Online travel platform stocks rose broadly on Thursday following reports that OpenAI is slowing its plan to integrate direct booking features into ChatGPT. This development has alleviated investor concerns that AI chatbots could eventually replace travel intermediaries. Shares of Expedia (EXPE.US) climbed more than 13%, while Booking Holdings (BKNG.US) and TripAdvisor (TRIP.US) advanced 8% and 2%, respectively.
The rally was triggered by a report indicating that OpenAI found users often use ChatGPT to search for and research products but do not complete purchases on the platform. According to the report, which cited an OpenAI spokesperson, the company will shift its focus toward enabling payments within third-party applications connected to ChatGPT, rather than facilitating transactions directly within the chatbot. OpenAI has not yet responded to requests for comment on the report.
Previously, investors and analysts had expressed concerns that generative AI tools could become the primary channel for travel planning and booking, potentially bypassing intermediaries such as online travel agencies. Bernstein analyst Richard Clarke noted in a research report, "We view OpenAI's latest move as a positive for online travel platforms." He added, "This suggests Booking and Expedia can still reach consumers through AI platforms, reducing the risk of disintermediation."
It is worth noting that both Expedia and Booking were among the first companies to integrate with ChatGPT when OpenAI launched its plugin program in 2023. Mizuho analyst Lloyd Walmsley stated in a report, "We believe the shift from in-chat ordering to in-app redirection may signal the beginning of the unwinding of the AI threat narrative for platforms like Booking."
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