Expedia Handles Over Half Its Customer Inquiries Through AI
Expedia is using AI for customer support to resolve more than 250 million service interactions annually, CEO Ariane Gorin said on the company's Q1 2026 earnings call. More than 30% of those interactions are powered by AI, and that share is growing.
The travel booking platform handles over half its service inquiries through self-service channels. When customers need to speak with a human agent, AI shortens wait times and speeds up resolution by generating conversation summaries in more than 30 languages, providing agents with immediate context.
AI Boosts Personalization and Conversion Rates
Expedia is applying AI to personalization, mining data from hundreds of millions of traveler interactions-from shopping behavior to reviews to customer service contacts-to improve ranking and recommendation models. The company reported record attach rates on its main platform and higher conversion at Vrbo.
Two features drove adoption: Expedia's servicing agent and AI-powered filters. Travelers using the filters return more often and convert at higher rates.
During the Iran-Israel-United States conflict, when Middle East flights were canceled, AI helped Expedia manage surging service volumes. Human agents could focus on complex, time-sensitive issues while the system handled routine inquiries.
New Customer Acquisition Through AI Search
Expedia's fastest-growing customer acquisition channel is Answer Engine Optimization-structuring content to appear in ChatGPT and other AI search results. The company integrated with ChatGPT early and recently went live with Claude.
Traffic and bookings from AI-driven channels remain small but show promise. Gorin said the mix of new users, conversion rates, and average purchase sizes are encouraging. The company views this as a long-term opportunity to reach engaged audiences while diversifying marketing spending.
Financial Performance and Loyalty Expansion
Expedia reported strong Q1 results. Overall bookings grew 13% year over year, with consumer brands bookings up 10%. Revenue increased 15% to $3.4 billion. The company reported a $6 million net loss, a significant improvement from a $200 million loss in the same quarter last year.
The company also expanded loyalty partnerships, launching exclusive deals with Bank of Montreal and Uber. Hotels and lodging from Expedia now appear in the Uber app, and Uber services are available through Expedia's app. Active loyalty members grew mid-single digits.
Industry Trend
Expedia isn't alone. Airbnb reported that its AI assistant resolved 40% of inquiries last quarter, and Booking.com uses AI to route customers to the best resolution channel and provide human agents with customer context.
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