Kayak and Expedia Harness AI to Transform Travel Planning

When discussing AI agents and assistants, one of the most exciting use cases revolves around travel. The vision of an AI-powered travel agent that can seamlessly book flights and hotels based on a video about the Maldives is inching closer to reality. Two of the largest companies in the travel booking industry, Kayak and Expedia, are leading the charge.

Matthias Keller, chief product officer at Kayak, shared at VB Transform that the company has been experimenting with this idea for a couple of years. Kayak has even partnered with Amazon’s Alexa, although the partnership no longer launches on Alexa. Despite this, Kayak continues to offer different search modes for customers. “We are striving for this vision of a travel agent that is always available, that is agentic and powered by AI,” Keller said. In April, Kayak launched a new testbed for agentic travel booking called Kayak AI, a fully chat-based experience that combines the power of ChatGPT and various tools, including web search and specific tools for flights or hotels.

Kayak aims to create a fully personalized experience that handles all the heavy lifting for travelers. Meanwhile, Expedia’s CTO, Ramana Thumu, highlighted the importance of striking a balance between traveler control and agent control. “More and more customer expectations will revolve around a seamless experience, from search to completing transactions,” Thumu noted. “But the most important thing is the balance between the control the traveler has and the control we give to the agent.”

Expedia is capitalizing on the growing influence of travel influencers on platforms like Instagram. Thumu introduced Expedia’s Trip Matching feature, which launched in June for U.S. customers. This feature allows users to send any travel-related public Instagram Reel to Expedia, and the platform will build an itinerary based on it. Expedia’s extensive 30-year database plays a crucial role in building these personalizations.

Personalization can extend beyond just planning trips based on inspiration or previous preferences. Kayak’s platforms and AI agents can recommend activities based on the weather in the traveler’s destination. For instance, if it’s raining, the AI can suggest indoor activities.

AI is also helping to simplify the complexity of travel planning. Both Kayak and Expedia find AI useful for “snackers,” individuals who search for flights or hotels without intending to book. These users often just want to check prices. AI systems can provide quick answers and even encourage these users to book their trips by presenting all the necessary information.

Keller explained, “What I find interesting when I pitch Kayak AI to somebody is that we can get this complex trip planned without running all of the searches. Every hotel booking site out there can tell you that a hotel has a pool, but you have to go deep to find an infinity pool. That’s the type of question that ChatGPT does a great job with, so it’s something we have to adapt and deliver.”

As the travel industry continues to embrace agentic AI, the future of travel planning looks more personalized and efficient. Both Kayak and Expedia are at the forefront, ensuring that travel inspiration can seamlessly turn into a reality.