Expedia unveiled a new AI-driven travel assistant designed to create personalized trip itineraries by analyzing user preferences and real-time availability. The tool integrates machine learning to optimize flight and hotel combinations, aiming to increase booking conversion rates and average revenue per user.

Shares of Expedia rose 10.8% on the day of the AI announcement, making it the top gainer in the Nasdaq 100. Investor enthusiasm reflected expectations that the AI rollout could drive revenue growth and strengthen the company’s competitive positioning.

The broader market saw a pullback as West Texas Intermediate crude jumped 6.5% to $79.70 per barrel, stoking fuel cost concerns for airlines and travel companies. Other travel stocks underperformed sharply, underscoring Expedia’s standout performance during the sector-wide selloff.

Management expects the AI tool to enhance user engagement and booking efficiency, potentially lifting gross bookings in upcoming quarters. Analysts will watch adoption rates and cost savings from automation as key indicators of the tool’s impact on long-term margins.