Booking Holdings, which operates major travel brands including Booking.com and Priceline, spends nearly $9 billion annually on customer acquisition, according to CFO Ewout Steenbergen. Speaking at the Fortune AIQ Summit on October 1, Steenbergen outlined how AI is reshaping travel planning by enabling more seamless, personalized, and proactive experiences before travelers even begin their trips.
Steenbergen described AI’s potential to create a “connected trip” by integrating flights, hotels, restaurants, rental cars, and activities. Examples include AI suggesting indoor visits when rain threatens an itinerary, automatically adjusting restaurant reservations after flight delays, and recommending activities based on traveler preferences. He emphasized moving beyond isolated AI pilots and focusing on unit economics to measure impact. About one-third of Booking’s consumer traffic originates from paid channels, which cost the company billions annually.
The integration of AI into travel planning addresses a key industry challenge: enhancing customer loyalty and engagement through personalized experiences. Booking’s approach contrasts with simpler chatbot solutions by aiming for a holistic trip management system. This strategy aligns with broader trends in travel technology, where companies seek to differentiate through AI-driven convenience and customization, potentially increasing frequency of use and trust among travelers.
Booking Holdings reported spending between $8 billion and $9 billion each year on paid customer acquisition channels, including search and social platforms, with AI playing a growing role in optimizing these investments, according to Steenbergen’s remarks at the Fortune AIQ Summit.