EXPEExpedia Group, Inc.

“AI improves our post-booking experience. We handle more than 250 million service interactions a year with over half resolved through self-service. More than 30% of those are powered by AI and that number keeps increasing. And when human support is required, AI shortens wait and handling times and enables faster resolution. We're automating conversation summaries in over 30 languages, enabling seamless handoffs with context across our global workforce and reducing new agent onboarding time by about 60%.”

“AI-enabled tools are driving hundreds of millions of dollars in realized marketing value through greater productivity and workflow automation.”

“Definitely, we're seeing the use of AI and the associated costs, broadly speaking, increasing. The team has done an excellent job managing their overall cost to include a number of reductions that we've made across multiple teams over the course of the last year. And that's left us room in our cost structure to be able to absorb that and deliver the margin expansion that we've talked about. That will moderate next -- as we cross into the second half of next year -- of this year. I expect token cost to go up. We're going to be adding back skills that we need to optimize our AI plans. And I think that will put some upward pressure on costs but I think the teams have done a good job continuing to take costs out.”

“with each of these AI channels, whether it's Gemini, whether it's ChatGPT, Claude, it's about making sure that our brands show up well there and then making sure that where we can, we then get traffic and we can land into our own brands. Now some of that is Answer Engine Optimization and I talked about the work we're doing there. It's the fastest-growing channel for us, still very small but it's the fastest-growing channel. And then there are integrations that we can do. We did an early integration with ChatGPT. We're now integrated and live with Claude.”

“AI enables better personalization at scale in our products. We're using data from hundreds of millions of travelers' interactions from shopping to reviews, servicing and more, to continuously improve our ranking and recommendation models. AI-powered conversational experiences provide even richer data and coupled with more advanced models enable us to uncover deeper patterns. In the first quarter, this translated into higher conversion at Vrbo and record attach rates on Expedia.”

“AI is a great tool to strengthen our supply advantage given the massive scale we operate at. We work with nearly 3.7 million properties, of which 800,000 are exclusive to us. AI enables us to onboard partners faster. And last quarter, we grew lodging property count by 10% with our fastest growth outside the U.S.”

“Answer Engine Optimization is now our fastest-growing channel. And in February, we went live with ChatGPT ads. Traffic and bookings from AI-driven channels remain small but we're encouraged by the mix of new users, conversion and average purchase size.”

“Our 2 most widely adopted features are our servicing agent and AI-powered filters and travelers who use AI filters return more often and convert at higher rates.”

“I'm not totally surprised on OpenAI's decision to scale back. But we always experiment. We're going to continue experimenting because things are moving so fast. What we know and what other hotel chains and other OTAs know is, travel is complex, from bookings, to payments, to servicing. It takes expertise built up over time. And I think the decision and what we're seeing of a pullback in checkout reinforces our view that AI can be a powerful discovery layer but the actual booking and servicing is best handled by really a trusted, scaled provider. And to the extent that the market evolves in that way and it becomes more of a paid advertising, that's a space we know well.”

“AI reinforces our core advantages and amplifies our execution against our priorities. We're using it to enhance the experience for our partners and the travelers that come to us direct and to acquire new traffic and market more effectively.”

“As flights were canceled across the Middle East, AI helped us handle surging volumes at speed, allowing our human agents to focus on more complex time-sensitive issues.”

“we are not constraining ourselves. That being said, we're certainly pressurizing our usage. So like with everything we're doing, we're being disciplined.”

“AI has helped us do this. It's helped us do more tests, deliver more gains across both paid and unpaid channels.”