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AI in Travel

A Blueprint for the Future of Travel Tech?

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In the wake of a post-pandemic travel rebound, Expedia Group (EXPE) has emerged as a standout performer, with its stock surging 17.64% in premarket trading following a Q2 2025 earnings report that defied expectations. The company’s ability to leverage AI-driven demand forecasting and operational efficiency has not only fueled its recent success but also signaled a broader shift in how tech-savvy travel firms are reshaping the industry. For investors, the question is no longer whether AI will transform travel—it’s how quickly and profitably it will do so.

Expedia’s Q2 2025: A Masterclass in AI-Driven Execution

Expedia’s Q2 results were nothing short of extraordinary. The company reported an adjusted EPS of $4.24, 7.07% above estimates, and revenue of $3.79 billion, exceeding forecasts by $90 million. These figures were underpinned by a 5% increase in gross bookings to $30.4 billion, driven by a 7% rise in booked room nights and a 13% surge in international revenue. But the real story lies in how Expedia achieved this: through aggressive AI integration.

CEO Ariane Goran and CFO Scott Schenkel emphasized during the earnings call that AI is no longer a buzzword for Expedia—it’s a core operational tool. The company has deployed machine learning algorithms to analyze historical booking data, weather patterns, and even local events to predict demand with surgical precision. This has enabled dynamic pricing strategies, optimized inventory management, and hyper-personalized marketing campaigns. The result? A 20% improvement in forecasting accuracy compared to pre-AI benchmarks, directly translating to higher margins and customer satisfaction.

The AI Revolution in Travel: Beyond Expedia

Expedia’s success is part of a larger trend. Across the travel sector, companies are racing to adopt AI-driven demand forecasting to stay competitive. For instance, Hostaway raised $365 million in 2025 to enhance its AI-powered property management system, while Flyr secured $295 million to refine its real-time pricing algorithms. These investments reflect a growing consensus: AI isn’t just a cost-cutting tool—it’s a revenue multiplier.

The data supports this. Travel companies using AI for demand forecasting report a 15-20% improvement in accuracy, enabling them to adjust pricing in real time and avoid overstocking or underutilizing assets. For example, AI-driven segmentation has allowed firms to create tailored travel packages, boosting sales by up to 25%. Meanwhile, real-time analytics tools reduce decision-making time by 40%, giving companies a critical edge in a fast-moving market.

Investor Sentiment: Cautious Optimism Amid Hype

Despite the enthusiasm, the travel tech sector remains a mixed bag. Q1 2025 funding totaled $1.1 billion, a modest recovery from the all-time low in 2024 but still far below the $5.8 billion raised in 2024. Investors like Gilad Berenstein of Brook Bay Capital caution against overhyping AI, stressing that startups must deliver tangible ROI. “The real winners will be those solving operational pain points, not just chasing consumer trends,” he notes.

Yet, the long-term outlook is bullish. The global AI market, valued at $455 billion in 2024, is projected to grow at a 19% CAGR, reaching $2.5 trillion by 2032. North America, with its 36.84% market share, is leading the charge, and travel is a key beneficiary. AI is now powering chatbots, virtual assistants, and recommendation engines, creating a seamless, data-driven experience for travelers.

Strategic Positioning: Why AI-Adaptive Firms Win

For investors, the key takeaway is clear: prioritize companies that are not just adopting AI but embedding it into their DNA. Expedia’s 89.54% gross profit margin and 0.37 PEG ratio underscore its financial health, but its true strength lies in its ability to scale AI-driven innovations. The company’s share repurchase program (reducing shares by 21% over three years) and $9.2 billion in liquidity further reinforce its resilience.

Other AI-adaptive firms, like Klook and TravelPerk, are also worth watching. These companies are leveraging AI to streamline B2B operations, enhance customer segmentation, and reduce costs. For example, Klook’s AI-driven advertising platform has boosted conversion rates by 30%, while TravelPerk’s predictive analytics cut travel expenses by 15% for corporate clients.

The US Market: A Rebound with AI at Its Core

The US travel market, which accounts for 40% of Expedia’s revenue, is a critical battleground. While Q4 2025 growth may moderate due to soft demand, the long-term fundamentals remain strong. AI-driven demand forecasting allows companies to navigate volatility, adjusting pricing and inventory in real time. For instance, Expedia’s B2B segment, which grew 17% in Q2, is capitalizing on AI to offer dynamic corporate travel solutions, a trend likely to accelerate.

Investors should also consider macroeconomic factors. With the US Federal Reserve signaling potential rate cuts in 2026, consumer spending on travel is expected to rebound. AI-adaptive firms will be best positioned to capitalize on this, as they can scale operations quickly and maintain margins in a low-interest-rate environment.

Conclusion: The AI-First Travel Sector Is Here

Expedia’s stock surge is more than a one-off—it’s a harbinger of a new era in travel. As AI-driven demand forecasting becomes the norm, companies that fail to adapt will be left behind. For investors, the message is clear: allocate capital to firms that are not just using AI but redefining it. The US travel market, with its vast consumer base and regulatory tailwinds, offers a fertile ground for these innovators.

In a world where data is the new currency, the winners will be those who turn it into gold. And for now, Expedia and its AI-first peers are leading the charge.



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AI in Travel

Edo Govt Denies PDP’s N3.51bn Travel Claim as ‘AI Fabricatio

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The Edo State Government and the state chapter of the Peoples Democratic Party Caretaker Committee on Sunday clashed over an alleged N3.51bn incurred by the government on travel expenses.

The PDP said it was outraged by the revelation that the Senator Monday Okpebholo-led administration “squandered the huge amount on travel in just the first half of 2025.”

The government, however, dismissed the claim as “AI-generated,” noting that since his assumption of office, Okpebholo had not embarked on any frivolous voyage.

It maintained that every kobo spent on official engagements, both local and international, was “strategically aimed at forging partnerships, attracting investments, and securing opportunities that will yield long-term benefits for Edo people.”

A statement on Sunday by the PDP Publicity Secretary, Chris Nehikhare, said, “The Peoples Democratic Party, Edo State chapter, is outraged by the disgraceful revelation that the Senator Monday Okpebholo-led administration squandered an alarming N3.51bn on travel in just the first half of 2025.

“This waste comes at a time when the National Bureau of Statistics (NBS) Capital Importation Report confirms that Edo State failed to attract a single kobo in foreign investment, while states like Lagos, Ogun, Oyo, Kaduna, Kano, and even Ekiti made the list.

“The contrast is both embarrassing and telling. Other states are opening their doors to capital, Edo’s leaders are opening their wallets for endless trips.

“This reckless expenditure is an insult to the good people of Edo State who continue to endure poor roads, inadequate healthcare facilities, decaying schools, delays in salary payments and epileptic power supply.”

Responding, the governor’s Chief Press Secretary, Fred Itua, in a statement, said, “The attention of the Edo State Government has been drawn to yet another baseless, ill-informed, and laughable press statement by the moribund Peoples Democratic Party in Edo State, signed by its ever-noisy but chronically uninformed, self-imposed mouthpiece, Chris Osa Nehikhare.

“It is ironic, if not downright insulting, that the PDP, a party whose years of misrule, monumental corruption, and gross incompetence left Edo State in ruins, now attempts to lecture the people on governance, accountability, and prudent spending.

“The same PDP that had every opportunity to transform Edo but instead chose to plunder its resources, destroy public trust, and mortgage the future of our people now pretends to be the conscience of the state. Edo people are neither fooled nor interested.”

The government dismissed the claims as false, adding that the governor had been forging alliances since assuming office to develop the state.

“Senator Monday Okpebholo’s administration is a government of action, purpose, and vision. The AI-generated claims by the moribund PDP are false.

“Since he assumed office, Governor Okpebholo has not embarked on any frivolous voyage.

“Every kobo spent on official engagements: local or international, is strategically aimed at forging partnerships, attracting investments, and securing opportunities that will yield long-term benefits for Edo people.”

The governor’s aide carpeted Nehikhare, adding that he was the least qualified to talk about accountability, prudence or governance.

“As for Nehikhare, he is the least qualified person in Edo State to talk about accountability, prudence, or governance.

“His political resume reads like a manual on failure: years spent defending corruption, whitewashing incompetence, and parroting lies to keep his stomach full while Edo people suffered.

“The PDP’s talk of ‘crumbling infrastructure’ is the height of hypocrisy. It was under their watch that Edo’s schools rotted, our roads collapsed, hospitals became death traps, and investments fled in droves,” the statement added.



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AI-Powered Travel: UAE Leads in Smart, Seamless Experiences

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In a country that’s synonymous with futuristic skylines and hyper-connected infrastructure, it’s no surprise that the UAE is redefining what it means to travel. From the moment a trip is planned to the final post-travel review, artificial intelligence (AI), biometrics, and automation are increasingly at the heart of the experience. Airports are becoming smarter, travel planning is more personalised than ever, and reliability is being re-engineered by the minute.

A New Era of Intelligent Travel

Dubai International Airport (DXB) is leading the charge when it comes to next-gen travel experiences powered by AI. As the world’s busiest international hub, the pressure to deliver smooth, secure, and swift passenger journeys is immense and technology is rising to the occasion. “AI is revolutionising the UAE travel journey from start to finish,” says Omar Bin Adai, Chief Technology and Infrastructure Officer of Dubai Airports. “At DXB, biometric smart gates offer seamless passport control with facial verification, eliminating manual checks. Our new ‘Unlimited Smart Travel’ takes this further, enabling up to 10 guests to complete immigration in just 14 seconds using facial recognition alone.”

Beyond passenger flow, AI is working hard behind the scenes. According to Adai, predictive maintenance and AI-driven baggage systems are ensuring near-perfect operations. “In Q1 2025 alone, DXB processed over 21 million bags with a 99.8% accuracy rate and one of the world’s lowest mishandling rates – 1.95 per 1,000 passengers.”

These numbers aren’t just impressive—they represent a growing commitment to using data and intelligence to deliver exceptional guest experiences. “This strategic integration of AI across every touchpoint exemplifies how the UAE is setting a global standard for intelligent, customer-centric travel infrastructure,” Adai adds.

While airports are getting smarter, so too is the way travellers plan their trips. Platforms powered by generative AI such as ChatGPT and Gemini are transforming the discovery phase of travel, giving users the ability to explore destinations, craft itineraries, and make informed decisions faster than ever before.

“We’re seeing strong uptake of AI-powered tools that support travellers, particularly during the research and planning phases of a trip,” says John Bevan, CEO of dnata Travel Group. “Platforms like ChatGPT have made travel information more accessible, helping users generate ideas and structure itineraries in seconds.”

Still, the technology has room to grow. “These platforms can struggle with the complex logistics of a full travel journey – managing bookings across multiple suppliers, handling real-time availability, and dynamic pricing. But the potential is enormous, especially in hyper-personalisation,” Bevan notes.

At dnata, the focus is on using AI to augment human expertise, not replace it. “We’re excited about this future. We’re integrating AI not just for efficiency, but to amplify the knowledge of our travel consultants – making it faster and smarter to deliver relevant, high-quality advice at scale.”

Elevating the Travel Experience

Technology is reshaping customer service like never before. Mobile apps, chatbots, and virtual assistants have become vital touchpoints, offering travellers personalised, real-time support that transforms uncertainty into confidence. Bin Adai highlights the profound impact: “In today’s travel landscape, the real game-changer has been placing instant, personalised support directly into passengers’ hands. Mobile apps and virtual assistants, particularly intuitive tools like DXB’s wayfinding app, have reshaped how travellers interact with airports.”

Among these innovations is DXB Express Maps, a dedicated app for Dubai International Airport that provides travellers with interactive 3D maps and a user-friendly interface to easily find gates, dining options, and other facilities. “Instead of uncertainty, travellers now effortlessly navigate complex terminals, access timely flight information, and manage their journeys seamlessly,” Bin Adai adds.

Complementing this is Pocket Flights, an app that gives instant access to real-time flight updates by simply scanning a QR code on flight status screens. Available in both English and Arabic across DXB and DWC airports, it delivers comprehensive information including gate changes, walking distances, wait times, and departure details — all at travellers’ fingertips.

The Airport Community App, affectionately dubbed the “mini-AOCC in your pocket,” supports over 59,000 users across 170+ entities in the oneDXB community. It merges user-driven features with operational tools designed to enhance guest experience and streamline airport efficiency. “This initiative strengthens internal communication and positions the app as an essential daily platform for the entire airport community,” Bin Adai explains.

Looking ahead, AI-driven recommendation engines are set to raise the bar even higher. “These systems are increasingly sophisticated, anticipating traveller preferences with precision and offering tailored, trusted suggestions,” says Bin Adai. “Ultimately, it’s about empowering the traveller with technology that feels human and intuitive, ensuring they always feel supported, understood, and confident at every step.”

Bevan echoes this sentiment but underscores the balance between speed and reliability: “Customer service today is increasingly being defined by immediacy and availability, especially in the travel sector where support is expected instantaneously – whether a person is booking a flight at midnight or making last-minute changes during a layover.”

While dnata is exploring consumer-facing chatbots as part of its future roadmap, its current AI investments focus on backend operations. “We’re already using AI to support training and quality assurance, including automated call listening capabilities that help us monitor service levels, identify pain points, and continuously improve our customer experience,” Bevan explains.

He adds that AI is also automating time-consuming manual processes, freeing teams to engage in higher-value interactions. “As we continue evaluating advanced communications technologies, accuracy and reliability remain key considerations. It’s not just about speed – it’s about ensuring the tools can provide relevant, context-aware support.”

Smart Journeys Ahead

No longer content with just convenience and punctuality, today’s traveller expects more — more control, more personalisation, and a more immersive experience from the moment a trip is imagined to the moment it ends.

According to Bin Adai, the shift is unmistakable. “Travellers in the UAE are increasingly expecting journeys that are not just seamless, but also smart, personalised, and immersive,” he says. “There’s a clear shift from traditional travel touchpoints to tech-enabled experiences that feel intuitive and engaging.” This evolution is powered by technologies like facial recognition for smoother immigration, AI-generated travel suggestions, and mobile-first tools that allow real-time support and bookings at the swipe of a screen. Airports like DXB have already embraced wayfinding apps and digital integration to deliver convenience with minimal friction.

But the transformation doesn’t end at the airport gates. “Travellers want digital convenience from planning to post-travel feedback,” Bin Adai notes. “Mobile-first platforms, immersive booking tools, and real-time support are no longer luxuries; they’re the baseline.”

This growing appetite for tech-forward travel solutions is not without its caveats. While AI and automation are streamlining the experience, the demand for human-centric service remains strong. “Technology is elevating convenience and efficiency, but the human touch remains essential,” he adds. “Dubai Airports continues to prioritise hospitality and in-person support, ensuring that travellers receive empathetic, culturally attuned service alongside advanced digital solutions.”

While echoing the sentiment, Bevan highlights an important distinction: modern travellers aren’t only looking for fast and easy experiences, they’re looking for assurance and options. “Travellers in the UAE today expect more than just convenience – they want control, flexibility, and confidence throughout their journey,” he explains. “What we’re seeing is a shift toward multi-channel and tech-enabled planning, where people want the freedom to engage with travel brands on their own terms — whether that’s online, in-store, through an app, or over the phone.”

For providers like dnata, that means maintaining consistency across all platforms and understanding that one solution won’t fit all. “Different age groups and lifestyles require different touchpoints, and it’s our responsibility to meet those needs with consistency, safety, and reliability,” says Bevan. “That means offering a seamless, secure experience whether a customer is booking through a chatbot at midnight or sitting down with an agent in one of our retail shops.”

He also underscores a key concern in this new era of digital interaction: trust. “As travellers share more information to receive personalised recommendations, they also expect us to handle that data with the highest levels of security,” Bevan notes. “Ultimately, it’s about building confidence, combining immersive and tech-integrated tools with the trust and assurance people need to feel good about their travel choices.”

What’s Next?

Over the next five to ten years, the country is poised to lead a radical shift toward intelligent, hyper-connected travel experiences that prioritise both ease and personalisation. “Over the next decade, the UAE is poised to lead a global shift toward smarter, fully connected travel,” says Bin Adai. “Biometric and contactless journeys will soon become the norm, enabling passengers to move through airports without ever presenting a document.” This vision is being woven into the very blueprint of the UAE’s next aviation mega-project — the expansion of Dubai World Central – Al Maktoum International (DWC). “The new airport will set a new benchmark for efficiency, capacity, and traveller-centric design,” Bin Adai adds.

From personalised service delivery and proactive customer support to predictive maintenance and operational efficiency, AI will touch every corner of the travel experience. “Our new digital experience project will cater to the latest AI technologies, helping elevate guest services to an entirely new level,” says Bin Adai. Looking further ahead, he sees the seamless integration of autonomous air taxis, high-speed ground transit, and eco-conscious infrastructure as part of a broader mobility ecosystem cementing the UAE’s place as a global hub for future-ready travel.

Bevan shares a similarly bold outlook. “Looking ahead, we see technologies like AI-generated itineraries, biometric-enabled travel, and predictive pricing engines becoming standard across the UAE’s travel landscape,” he says. “These tools are already beginning to take shape and in a region as digitally advanced and globally connected as the UAE, adoption will only accelerate.”



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MakeMyTrip launches AI-enabled travel agent Myra

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Online travel booking platform MakeMyTrip has introduced an AI-powered virtual travel agent that can guide users through every step of their journey on the website, from trip planning and booking to handling post-sales queries such as cancellations and refunds, via both voice and text.

Users can ask complex and open-ended queries in the realm of travel in Hindi or English like “Where can I go in August for a relaxing holiday with my kids?,” or “I want to go to south India to cover Madurai, Rameswaram, Kovalam, Kodaikanal. Can you suggest me the best route? But I don’t want to travel via flight”.

The virtual assistant Myra is built on a network of specialised AI agents across all major travel categories, flights, accommodation, holidays, ground transport, visas, and forex. It supports multimodal input (text, voice, image, video), continuous back-and-forth dialogue, itinerary edits, and post-sales support — all within the same interface.

Myra will gives user personalised answers based on up-to-date availability, prices, and relevance. MakeMyTrip claims that while most AI travel tools only offer suggestions to users, this tool goes a step further by helping users move from travel ideas to actually helping travellers book their travel and complete payment online – something that hasn’t been tried before. It will offer assistance not just with flights and hotels but also holiday planning, ground transport such as cabs and buses, visas and forex.

CEO Rajesh Magow said such digital innovations helped “reach the deepest corners, and bringing seamless, intelligent travel booking to those who have long been underserved by digital platforms.”

“MakeMyTrip has seen travel demand penetration grow deeper over the years, from metro to top 15 cities many years ago to now as many as 2,000 unique cities,” he told The Hindu. The portal commands more than 50% market share among all online travel booking portals.

Myra may be able to facilitate bookings for an individual but it lacks the complexities of negotiating, handling customer bargains, accounting for individual preferences for a group bookings like a human travel agent, or helping during a travel emergency.

“Even if AI is able to do 50% of a human tour manager’s work, there will still be room for workforce in other tasks and AI related human intervention,” he added.

The tool is currently available in Hindi and English and will be expanded to include other regional languages too. It is currently available in beta version which will be released to a limited group of real users for testing before the official launch.

Group Chief Technology Officer Sanjay Mohan called the product “the most ambitious build” undertaken by the company.

In the next stage, MakeMyTrip will add smarter search tools that can understand the meaning behind what you’re looking for, even from images and videos. This means one won’t have to rely only on fixed filters and can search in a more intuitive manner. The system will be able to pick up on subtle travel needs, making it easier and more personal to find what you want.



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