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Booking Holdings (BKNG) Unveils AI Trip Planner, Ups AI Efforts
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Booking Holdings (BKNG - Free Report) is constantly making strong efforts to deliver AI-driven travel booking experiences to customers.
This is evident from the latest introduction of AI Trip Planner, launched in beta for selected travelers based in the United States who are listed on the company’s app.
Notably, AI Trip Planner provides a new way to search for and plan a trip. It allows travelers to ask various questions regarding their trip planning to aid them in creating better itineraries.
The conversational travel booking feature of the new tool provides customers with tailored and relevant travel recommendations.
Moreover, the tool is integrated into the accommodation booking experience in the Booking.com app, which allows customers to complete their reservations just by tapping on the accommodation they are interested in.
Further, it enables travelers to check other options while chatting with the AI Trip Planner.
We note that the underlined tool is based on the existing machine learning (ML) models and large language model (LLM) from OpenAI's ChatGPT API. Thus, the company ups its AI efforts with the latest move.
Further, the company is likely to gain solid momentum among travelers based on this conversational trip-planning AI tool.
Generative AI has created a niche in this data-driven world on the back of the growing proliferation of LLM-based chatbots.
Moreover, LLMs have been captivating users by providing accurate and quick answers to complex questions.
Thus, the latest move is expected to aid BKNG in further strengthening its footprint in the online travel booking space as well as gaining momentum in the booming chatbot market.
Per a report from Grand View Research, the global online travel booking market is expected to witness a CAGR of 9% between 2022 and 2030.
Per an Allied Market Research report, the market is likely to reach $1.8 trillion by 2031, seeing a CAGR of 14.8% between 2022 and 2031.
Bottom Line
Booking Holdings’ growing prospects in this promising market are expected to aid it in winning investors’ confidence in the near term.
Notably, BKNG has gained 31.8% in the year-to-date time frame, outperforming the industry’s 30.7% growth.
Further, these prospects are likely to benefit the financial performance of the company in the near term.
The Zacks Consensus Estimate for 2023 revenues is pegged at $20.35 billion, which indicates 19.1% growth from 2022.
The consensus mark for 2023 earnings stands at $136.88 per share, which reflects growth of 37.1% from the figure reported in 2022.
This apart, Booking Holding’s solid AI endeavors are expected to strengthen its competitive position against its peer – Expedia (EXPE - Free Report) , which is also making concerted efforts to leverage the power of AI to deliver an enhanced experience to customers.
Notably, Expedia recently introduced a ChatGPT-powered in-app travel planning experience in collaboration with OpenAI. The new experience enables open-ended conversation for Expedia members and assists them in planning an organized and cost-efficient trip.
Additionally, the ChatGPT experience will provide various recommendations on where to visit, how to get around and what to see and do.
Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
Image: Bigstock
Booking Holdings (BKNG) Unveils AI Trip Planner, Ups AI Efforts
Booking Holdings (BKNG - Free Report) is constantly making strong efforts to deliver AI-driven travel booking experiences to customers.
This is evident from the latest introduction of AI Trip Planner, launched in beta for selected travelers based in the United States who are listed on the company’s app.
Notably, AI Trip Planner provides a new way to search for and plan a trip. It allows travelers to ask various questions regarding their trip planning to aid them in creating better itineraries.
The conversational travel booking feature of the new tool provides customers with tailored and relevant travel recommendations.
Moreover, the tool is integrated into the accommodation booking experience in the Booking.com app, which allows customers to complete their reservations just by tapping on the accommodation they are interested in.
Further, it enables travelers to check other options while chatting with the AI Trip Planner.
We note that the underlined tool is based on the existing machine learning (ML) models and large language model (LLM) from OpenAI's ChatGPT API. Thus, the company ups its AI efforts with the latest move.
Further, the company is likely to gain solid momentum among travelers based on this conversational trip-planning AI tool.
Booking Holdings Inc. Price and Consensus
Booking Holdings Inc. price-consensus-chart | Booking Holdings Inc. Quote
Growth Prospects
Generative AI has created a niche in this data-driven world on the back of the growing proliferation of LLM-based chatbots.
Moreover, LLMs have been captivating users by providing accurate and quick answers to complex questions.
Thus, the latest move is expected to aid BKNG in further strengthening its footprint in the online travel booking space as well as gaining momentum in the booming chatbot market.
Per a report from Grand View Research, the global online travel booking market is expected to witness a CAGR of 9% between 2022 and 2030.
Per an Allied Market Research report, the market is likely to reach $1.8 trillion by 2031, seeing a CAGR of 14.8% between 2022 and 2031.
Bottom Line
Booking Holdings’ growing prospects in this promising market are expected to aid it in winning investors’ confidence in the near term.
Notably, BKNG has gained 31.8% in the year-to-date time frame, outperforming the industry’s 30.7% growth.
Further, these prospects are likely to benefit the financial performance of the company in the near term.
The Zacks Consensus Estimate for 2023 revenues is pegged at $20.35 billion, which indicates 19.1% growth from 2022.
The consensus mark for 2023 earnings stands at $136.88 per share, which reflects growth of 37.1% from the figure reported in 2022.
This apart, Booking Holding’s solid AI endeavors are expected to strengthen its competitive position against its peer – Expedia (EXPE - Free Report) , which is also making concerted efforts to leverage the power of AI to deliver an enhanced experience to customers.
Notably, Expedia recently introduced a ChatGPT-powered in-app travel planning experience in collaboration with OpenAI. The new experience enables open-ended conversation for Expedia members and assists them in planning an organized and cost-efficient trip.
Additionally, the ChatGPT experience will provide various recommendations on where to visit, how to get around and what to see and do.
Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are The TJX Companies (TJX - Free Report) and Walmart (WMT - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TJX Companies has gained 6% on a year-to-date basis. The long-term earnings growth rate for the TJX stock is projected at 10.5%.
Walmart has gained 9.8% on a year-to-date basis. The long-term earnings growth rate for the WMT stock is projected at 5.5%.