At the core of Booking Holdings’ long-term strategy is CEO Glenn Fogel’s belief in the impact of generative artificial intelligence (GenAI). He is looking to this technology as a cornerstone for long-term growth in the travel industry.
“In a few days marks my 25th year at this company, and I’m more excited than ever about our potential with the transformative force of generative AI,” Fogel said to analysts Thursday (Feb. 20) during the company’s fourth-quarter earnings call. “It’s redefining how people will experience the world. GenAI is pushing the pace of technological innovation.”
Fogel expressed his belief GenAI will be a game-changer — driving not just personalized travel planning but enabling seamless and frictionless journeys and connected experiences for travelers.
Booking.com is leveraging GenAI to enhance its customer experience, introducing new features like the Smart Filter tool. This allows travelers to describe their ideal accommodation in their own words, and GenAI scans Booking’s inventory to provide tailored results.
The Property Q&A feature works similarly, helping customers get specific details about properties, like pet policies or EV charging points. Additionally, Booking.com is experimenting with GenAI reviews to summarize helpful customer feedback.
“The development and use of AI agents will bring together different elements of travel into a connected platform,” Fogel said. “GenAI has the potential to drive improved operational efficiency. We’re already seeing early benefits of this with customer service and plan to build on this. We’re working with leading GenAI companies, reflecting our commitment to stay at the forefront of this rapidly developing field.”
Fogel’s vision aligns with industry trends. According to a PYMNTS Intelligence report, “At Your Service: Generative AI Arrives in Travel and Hospitality,” airlines and hospitality businesses are exploring the potential of AI. The report shows 52% of customers expect AI to assist with interactions, while 44% believe it will enhance guest engagement.
Fourth-quarter room nights grew 13% while gross bookings rose 17%, to $37.2 billion; revenue increased 14%, to $5.5 billion. For the full year, room nights increased 9% while gross bookings grew 10%; and revenue rose 11%, to $23.7 billion.
Booking Holdings comprises Booking.com, Priceline, Agoda, KAYAK and OpenTable. A network of subsidiary brands includes Rocketmiles, Fareharbor, HotelsCombined, Cheapflights, and Momondo.
Fogel emphasized the company’s continued focus on its strategic initiatives, including the “connected trip” vision, AI advancements, and expanding the Genius loyalty program.
“The Genius loyalty program is progressing nicely as we extend it to other travel verticals beyond accommodations,” Fogel said. “We’re encouraged to see more of our travelers moving into our higher Genius tiers, levels 2 and 3, which represents 30% of our travelers. These 2 and 3 level travelers have meaningfully higher booking and frequency rates than the rest of our travelers. We’ve seen steady growth.”
This success with the Genius loyalty program underscores the potential of new technologies and agent-based models to elevate the customer experience, Fogel said.
“Agentic models will change the way some customers discover and use our platform,” he added. “Working with these models can generate unique value with loyalty benefits and rewards, high quality customer service, and an easy and trusted payment process. It’s critical to deliver value and continue to be a trusted platform our customers choose to make bookings with us. I’m excited about the benefits this technology will bring to us now and in the future.”
