Google’s AI Overviews Lead to Kayak’s $457M Write-Down

Booking Holdings has written down $457 million in value from its Kayak brand, citing lower growth expectations and higher marketing costs caused by major changes in how people search for travel online.

According to Skift, the shift is largely due to Google’s new AI features, such as AI Overviews, which limit traditional search results at the top of the page. This has made it harder for companies like Kayak to get free, organic traffic.

Kayak CEO Steve Hafner explained that the company now has to spend more on Google ads to stay visible.

Hafner said the writedown is mostly an accounting move, not a signal of trouble for the company, and emphasized that Kayak remains profitable.

This highlights a growing challenge across the travel industry, as AI-powered features by dominant platforms, such as Google, are changing how users discover travel options.

In response, Booking Holdings continues to invest in its own AI tools to enhance the value proposition of its platforms. Just recently, Booking reported promising early success with new AI tools that are already helping improve search speed, increase conversions, and reduce cancellations.