BKNGBooking Holdings Inc.

“At Priceline, Penny continues to evolve into a more interactive end-to-end AI-driven journey with increasingly advanced shopping and discovery capabilities. It enables conversational search and brings a multiproduct trip together in a single integrated view, including a dynamic travel map. Penny is also becoming more personalized with the ability for travelers to build trips with an understanding of their preferences with recommendations that improve over time. In very early testing from a small sample set, we are seeing a noticeable uplift from users who engage with Penny compared to non-Penny users.”

“in this quarter at Agoda, we saw a double-digit year-over-year reduction in customer service cost per booking, driven by AI-assisted automation, helping us reduce costs and operate more effectively at scale.”

“In OpenTable, we are building on the launch of AI concierge by expanding it beyond answering diner questions into a broader discovery tool, starting with natural language search. We're also developing capabilities to better support restaurant partners through more streamlined operations and actionable revenue-focused insights, including voice-enabled reservation tools and table turnover data that help bring more off-line tables online and support higher utilization and revenue.”

“we're also looking at other metrics. So it's not only conversion, although we see there, as Glenn was just saying, some very early positive signs. But again, the sample size is still very limited. We're also looking at faster search, shorter path between search and ultimately booking, lower cancellation rates, positive customer satisfaction, more engagement. So many of those data points are all pointing in a positive direction.”

“At Booking.com, we're introducing additional AI-driven capabilities to support travelers earlier in their journey, including enhanced natural language search and more dynamic inspiration-led discovery features. Smart filters have now been rolled out globally in accommodations and we are beginning to extend and test these capabilities within the cars vertical.”

“we love the relationships we are building and have built with all of the frontier players where we are involved with them, talking how we can work together to create the best experience for both of us. And we've talked -- you've seen the announcement, you -- maybe you saw the Claude Live advertisement recently where we were right upfront there.”

“we're very happy that for Penny, you now can really book through Penny directly that accommodation or flight. So we are getting now more of those data points as well. By the way, many of the AI travel planning tools that are out in the market are not possible to make that step. So in Penny, now that's possible.”

“agentic service flows for complaints and cancellation capabilities are improving the post-booking experience, reducing customer service contacts and increasing self-service adoption, helping partners operate more efficiently.”

“Let me now turn to GenAI, which we continue to believe represents a significant opportunity to enhance both the traveler and partner experience. Our approach remains disciplined and focused on where AI can drive meaningful impact across our products and services, improving effectiveness for travelers and partners, driving internal efficiencies and working closely with leading external partners to ensure we are well positioned in the event that current usage of frontier LLMs for travel discovery and planning becomes more closely tied to direct immediate booking execution.”

“It's definitely not a compute problem. It's not a sense of cost. It is purely one of the way we always do things. We like to test things. We like to make sure it's working. We don't want to have customers who are unhappy. We want to make sure we're meeting any regulatory issues that we have to deal with. That's one thing I think a lot of people really just don't have a sense of -- there are a lot of rules about AI now, particularly in Europe, now all over. And we have to meet not only the AI rules but also the privacy rules.”

“We are incredibly excited about the same -- and maybe recall our last call where I mentioned the possibility or belief that some of these players would go towards a performance marketing platform that we thought would be very advantageous to us given the experiences we've been able to deal with at Google and how well that has helped create our company to where we are now, it's, we believe, a good thing.”

“the other thing is -- and this is just really good, it's going to increase, I believe, the TAM for overall travel. Nobody knows what the right number is. Maybe it's 35%, maybe it's 45%. Maybe it's going to be higher of people who don't buy their travel digitally but that number is going to go up. And I believe using AI is going to make it easier for people to do that.”

“Every single one of the brands, Agoda, KAYAK, everybody is coming up with new things. Maybe you used the OpenTable concierge, great thing, really helping diners and such. Now the key thing is, though, we have people who are working on what is good for them right now but they're always sharing what's working, what's not, what's getting you better conversion or not.”

“For us, it's very important to protect customers that are coming direct to us. We want to make sure that they have an experience in our environment that is at least as good as they can get at a generic horizontal agent because in that case, they want to do that with us because they are with a brand they know, they trust, they have the loyalty program with.”

“Our relationships with companies such as OpenAI, Google, Anthropic and Amazon, combined with our disciplined approach, positions us well to capture these emerging opportunities and drive long-term value for both travelers and partners.”

“we continue to make strategic investments and technological progress to build a more frictionless and integrated offering for our travelers and partners particularly by leveraging the potential of generative AI-enabled capabilities.”

“continuing to innovate across our GenAI capabilities, each of which I will speak to shortly.”