With five unique artificial intelligence projects underway, Booking Holdings is reinforcing its commitment to innovation as CEO Glenn Fogel lays out strategies to ensure the company stays competitive for the long haul in the shifting travel technology sector.
Booking Holdings’ AI Strategy Drives Its Competitive Advantage
As the travel industry undergoes swift transformation due to tech innovation, Glenn Fogel, CEO and President of Booking Holdings, has emphasized the organization’s determination to maintain its leadership by substantially backing AI development on several fronts. Presenting at a recent industry forum, Fogel likened Booking’s investment philosophy to that of venture capital, revealing that the company is currently running five distinct AI projects across its business portfolio.
Among these initiatives are specialized AI-driven consumer agents customized for Priceline, Agoda, and Booking.com. Alongside these, two startups that are designed to be AI-native are also in the works. Fogel pointed out that this broad spectrum of activity is made feasible by Booking’s strong financial position and premium access to leading tech professionals—a scale that gives them leverage compared to smaller firms.
Agility and Focus as Essential Strategies in Travel Tech
Fogel remarked that the crux of competition today is not about developing AI tools themselves, since such technology is quickly becoming commonplace. Instead, the essential differentiators will be brand equity, existing customer rapport, and the ability to scale—advantages that technology alone cannot easily counter. He encouraged established companies to evaluate what proprietary strengths they still hold if AI capabilities become ubiquitous across the industry.
Speed in experimentation is a priority for Booking Holdings, Fogel asserted, with a willingness to quickly phase out projects that lack results, while further investing in those that show real potential. He praised the startup teams within the company for their swift development, warning that bigger enterprises could become “bureaucratic and slow-moving” unless they foster similar nimbleness. For those without Booking’s vast resources, Fogel recommended carefully selecting focused AI projects and pursuing them aggressively.
Moving Toward the Integrated Travel Experience
During the discussion, Fogel spoke about the persistent obstacles to delivering a fully unified and seamless trip booking process. Although he conceded that the dream of a “connected trip” remains out of reach for now, he highlighted the progress represented by Priceline’s Penny agent. Designed to manage travel interruptions, propose alternative plans, and complete bookings instantly, this AI feature could set apart whoever refines it most effectively.
Fogel suggested that travel brands should prioritize improving their direct booking platforms to ensure travelers prefer them over generalist agents—especially for support following a sale. He questioned if AI agents powered strictly by large language models can match the service level required when disruptions occur, underscoring the ongoing importance of brands that directly engage with their users.
Industry Developments: AI’s Growing Role, Airbnb’s Expansion, and What’s Next
Fogel reported that AI-generated referrals represent less than 1% of Booking.com’s room nights at present. He cast this fact as neutral and predicted significant growth for AI-mediated commerce in the near future. How quickly this happens—and which companies benefit most—remains uncertain.
Addressing competition, Fogel responded to Airbnb’s recent entry into the hotel market, calling this shift “inevitable.” He believes Booking could benefit if vacation rental hosts decide to seek alternative platforms to spread their listings, stating, “maybe now … say, ‘Oh, well I should get another source of demand,’ and they’ll come to us.” Whether Airbnb’s strategy ultimately helps or hurts Booking’s core hotel segment will become clearer over the next few quarters.
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