Booking Holding Says AI Is Speeding Up Search and Trimming Support Costs

Booking Holdings said that its AI tools are starting to improve efficiency across its main travel brands, including Booking.com, Priceline, Agoda, Kayak, and OpenTable.

The company said early results are positive. AI is helping travelers search faster, use self-service tools more often, and move more directly toward booking. The clearest cost benefit came from Agoda, where customer service costs per booking fell by double digits year over year, helped by AI-assisted automation.

Booking wants to keep travelers inside its own platforms

Booking’s AI push comes as travel search is becoming more conversational. Travelers can now ask broader questions about where to stay, what kind of trip to plan, or which property fits a specific need.

That creates a challenge for online travel agencies. If travelers begin their search in general AI tools, companies like Booking could lose direct traffic and influence over the booking decision. Booking wants its own platforms to be useful enough that travelers do not need to leave them for outside AI assistants.

AI is helping search and customer service

Booking.com is adding AI tools for natural language search, discovery, and smart filters. These features are designed to help users describe what they want in normal language, instead of only choosing from traditional filters such as price, location, or star rating.

Priceline is also testing Penny, its AI assistant. Booking said users who interacted with Penny showed a noticeable uplift compared with users who did not, though the sample size is still limited. The company is also tracking whether AI can shorten the path from search to booking, improve satisfaction, and reduce cancellations.

Agoda shows where AI can save money

The strongest efficiency example came from Agoda. Booking said AI-assisted automation helped the brand reduce customer service costs per booking by double digits in the first quarter. Booking.com is also using AI in complaint and cancellation flows, helping more travelers solve problems without contacting support.

A single booking can involve different hotel rules, payment systems, languages, currencies, and cancellation policies. If AI handles more simple cases, human agents can focus on more difficult problems, while the company lowers its cost per booking.

Strong Q1 results came with a more cautious outlook

Booking Holdings had a strong first quarter. Gross bookings reached $53.8 billion, up 15 percent year over year. Revenue rose 16 percent to $5.53 billion, and room nights increased 6 percent to 338 million. The company said conflict in the Middle East reduced room night growth by about 2 percentage points.

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