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Kayak and Expedia race to build AI travel agents that turn social posts into itineraries

by Investor News Today
July 1, 2025
in Technology
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Be part of the occasion trusted by enterprise leaders for almost 20 years. VB Remodel brings collectively the folks constructing actual enterprise AI technique. Study extra


>>See all our Remodel 2025 protection right here<<

When folks began to speak about AI brokers and assistants, the primary use case revolved round journey. Might somebody be watching a video concerning the Maldives and direct their AI agent to begin discovering flights and resorts, and e-book these seamlessly? 

We‘re inching nearer to the same future because the journey trade begins to embrace agentic AI. Kayak and Expedia, two of the biggest corporations in journey reserving, mentioned throughout VB Remodel that personalization and altering search patterns imply journey corporations can depend on brokers to make journey inspiration a actuality.

Matthias Keller, chief product officer at Kayak, mentioned the corporate has been experimenting with this concept for a few years, even benefiting from a partnership with Amazon’s Alexa. Kayak now not launches on Alexa, however that hasn’t stopped the corporate from providing completely different search modes for purchasers.

“We’re striving for this imaginative and prescient of a journey agent that’s at all times accessible, that’s agentic and powered by AI,” Keller mentioned onstage at VB Remodel. “In April, we launched our new testbed for agentic journey reserving known as Kayak AI; it’s a completely chat-based agentic expertise that places collectively the ability of ChatGPT and many various instruments. One is net search, however we additionally supply instruments particularly for flights or resorts.”

Keller mentioned Kayak is “working in direction of our imaginative and prescient of getting this absolutely customized skilled that does all of the heavy lifting for you whenever you plan journey.”

Whereas the concept of an agent proactively guiding potential vacationers makes for environment friendly journey planning, Expedia CTO Ramana Thumu famous that there’s a delicate steadiness to strike.

“Increasingly buyer expectations will revolve round a seamless expertise, from search to finishing transactions,” Thumu mentioned. “However a very powerful factor, and the shift I see taking place, is asking for the steadiness between the management the traveler has, and the management we give to the agent.”

One cause this steadiness turns into important is that, more and more, customers discover journey inspiration in all places. For certainly one of its AI initiatives, Expedia determined to capitalize on the rising affect of journey influencers who submit their journeys on Instagram.

Thumu mentioned Expedia’s Journey Matching characteristic, which launched in June for U.S. clients, permits folks to ship any travel-related public Instagram Reel to Expedia, and the platform can construct an itinerary based mostly on them. 

Thumu mentioned Expedia can construct such a AI product due to its in depth database amassed over 30 years. Each Thumu and Keller underscored the significance of knowledge in constructing out these personalizations, a activity that may be difficult. 

Personalization can transcend planning a visit based mostly on inspiration or earlier preferences, as Keller mentioned; finally, their platforms and AI brokers may begin recommending issues to do based mostly on the climate in your deliberate location throughout your keep. 

AI helps simplify the complexity

One use case the place corporations like Kayak and Expedia discover AI to be useful is for “snackers,” or people who seek for flights or resorts with none intention of reserving. These are normally individuals who simply need to test the value of a flight or learn the way a lot a resort prices. 

AI programs may help snackers discover their solutions, and will even encourage them to go on that journey, as a result of a lot of the tediousness of discovering lodging, transportation and actions may be offered to them proper there on both the Expedia or Kayak entrance finish. 

“What I discover attention-grabbing once I pitch Kayak AI to any person [is] I can say that we are able to get this complicated journey deliberate with out working all the searches,” Keller mentioned. “Each resort reserving web site on the market can inform you {that a} resort has a pool, however you need to go deep to search out an infinity pool. That’s the kind of query that ChatGPT does a fantastic job with, so it’s one thing we now have to adapt and ship.”

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