Booking Holdings Rises 8% as OpenAI Scales Back ChatGPT Direct Booking Plans
Shares of online travel agencies soared after OpenAI scaled back plans for direct bookings via ChatGPT, easing disintermediation fears; Expedia jumped over 12%, Booking Holdings rose 8% and Tripadvisor gained 5%. Travel platforms will now rely on third-party app integrations for checkouts, preserving agency roles in AI-driven bookings.
1. OpenAI scales back direct ChatGPT bookings
OpenAI has paused its plans to integrate direct booking checkouts into ChatGPT after finding users research travel products but do not complete purchases within the chatbot. The company will instead prioritize checkout processes through specific third-party app integrations using the ChatGPT plugins framework.
2. Booking Holdings shares gain 8%
Booking Holdings shares climbed 8% during Thursday’s session, mirroring a 12% surge for Expedia and a 5% rise for Tripadvisor as investors cheered the reduced threat of AI-driven disintermediation. The rally underscores market confidence in the resilience of online travel agencies.
3. Reduced disintermediation risk for online agencies
Analysts note that focusing on third-party checkouts allows travel agencies to maintain consumer access on AI platforms, lowering the risk of being bypassed by generative AI tools. This strategic shift reinforces the relevance of intermediaries in AI-enhanced travel planning and booking.