Booking.com: How AI is transforming the booking experience

The company uses generative AI to better understand traveler intent, enhancing personalization and the booking experience

Speaking at ITB Berlin, Matthias Schmid, the company’s senior vice president of accommodations, emphasized that generative AI is a revolutionary shift rather than an evolution. The technology enables Booking.com to enhance machine learning models, streamline internal operations, and improve customer interactions at various travel stages. The company has also been experimenting with AI-driven trip planning, post-booking assistance, and agentic AI, positioning itself at the forefront of AI adoption in the travel industry.

Key takeaways

1. Enhanced traveler understanding

• AI allows Booking.com to personalize hotel content based on traveler intent (e.g., family vs. solo traveler);
• The platform is evolving beyond just "search, book, pay" to assist in the early planning phase of travel.

2. Three core AI applications

• Internal productivity: AI tools help software engineers, summarize customer service calls, and enhance employee productivity;
• Machine learning improvements: AI enhances Booking.com’s models for pricing, fraud detection, and personalized recommendations;
• Traveler intent and personalization: AI improves search results and booking experiences by tailoring property descriptions and recommendations.

3. AI-powered features & expansions

• Generative AI trip planner launched in 2023, with smart filters and property Q&As;
• AI-powered trip assistant and car rental pick-up assistant launching soon;
• Expansion of AI features to European markets after rollout in the U.S., U.K., Australia, New Zealand, and Singapore.

4. AI’s role in data and search evolution

• AI integration helps Booking.com process data from various sources, including images and reviews;
• The company is integrated with multiple large language models (LLMs) and has built an AI integration layer for security and privacy;
• Future search evolution remains uncertain with the rise of generative AI startups.

5. Industry-wide AI adoption & challenges

• AI adoption is essential for companies in the travel industry;
• Data protection and proprietary information are key concerns;
• While AI levels the playing field in some areas (e.g., translations), complex AI applications require significant investment.

Get the full story at PhocusWire