In general, to assess a company’s operations and profitability, apart from looking at healthy financial statements, attention is usually paid to recent manpower needs of the company. Companies with financial losses will typically undergo significant layoffs to maintain a balance in their financials. However, these common judgments of the past cannot be applied to Booking.
According to Yahoo Finance, Booking Holdings Inc (Nasdaq symbol BKNG), the parent company of Booking.com, has recently become the most searched popular US stock, indicating that this tourism stock has become the focus of many investors. Over the past year, Booking Holdings’ stock price has risen by 42.03%, showing outstanding performance. However, Booking Holdings is preparing for large-scale layoffs for company restructuring, and Booking employees will face an unhappy winter.
Booking recently introduced a generative AI automated travel planning service that can replace manual services. Booking’s new technology allows travelers to book accommodation and plan their trips through AI without the need for travel agencies. This technological upgrade by Booking is a great advantage for investors and travelers who prefer to plan their trips independently, but it also signifies a major transformation in the tourism industry. With changes in travelers’ self-awareness and individual needs, not only will Booking’s employees’ jobs be taken over by AI, but travel agencies specializing in booking and planning trips may also be replaced. The global tourism industry is expected to undergo a major transformation by 2025.
Booking Launches Generative AI Trip Planner Beta Version
Booking.com’s new AI Trip Planner simplifies the travel planning process using generative AI, allowing travelers to easily find ideal accommodation by entering location, requirements, and keywords. The system filters out irrelevant search results, and AI customer service analyzes issues, providing answers through chat features. According to the official website’s press release, 41% of travelers are interested in using AI to help with recommendations and planning trips, choosing accommodations for specific cities, countries, and attractions. Booking redefines AI as “Alternative Itineraries” and identifies new traveler demands through research reports and data. Modern travelers prefer more personalized and private itineraries, which can now be completed through AI on mobile apps without revealing their whereabouts to others or easily checking in on social media.
Since June 2023, Booking has launched the AI Trip Planner in the US, and customers in the UK, Australia, New Zealand, and Singapore can also use the tool through the mobile app. In the coming months, the tool will be available in local languages in Spain, Italy, Germany, France, Poland, and the Netherlands, and a desktop version will also be released.
New generation travelers demand cooler climates and value real-time news
According to Booking’s data analysis, in response to global warming and climate change, travelers seek destinations with cool and comfortable temperatures. 54% of travelers want to enhance nighttime activities to avoid high daytime temperatures, and 42% prefer vacationing in cooler places. 61% of travelers plan to reduce time spent in the sun, with over half, 57% of travelers, preferring activities in the evenings and mornings. A significant 66% of people are eager to use AI to provide them with the latest travel information, delay reports, and recommendations for quieter, less busy spaces in airports and hotels.
Booking Holdings is facing significant technological and human resource changes. While the company has shown excellent stock performance over the past year, attracting a lot of investor attention, the decision to downsize and initiate company restructuring highlights the necessity of transformation. At the core of this transformation is the optimization of travel itineraries through generative AI technology, signaling structural changes in the entire tourism industry.
With the growing demand from the new generation of travelers for personalization, privacy, and real-time information, Booking’s AI Trip Planner emerges to help travelers customize their itineraries according to their individual needs, providing efficient and uninterrupted services. This not only poses challenges to the tourism job market but may also impact the entire business model of the travel industry, with the risk of travel agencies being completely replaced by AI technology.
Although Booking’s financial performance is strong, the layoffs and restructuring undertaken to meet market demands and technological innovations indicate that the current travel industry is at a crossroads of transformation. In the coming years, the global tourism industry will face larger scale structural changes, with generative AI being the driving force behind this transformation.