Travel stocks surge as OpenAI retreats from direct ChatGPT bookings
Expedia jumps 13.7% and Booking Holdings gains 8.5% as AI disintermediation fears ease
Online travel agency shares rallied sharply on Friday after OpenAI announced it would scale back direct checkout features within ChatGPT, removing a significant overhang that had weighed on the sector for months.
Expedia Group led the surge, climbing 13.7% to $251.54, while Booking Holdings gained 8.5% to $4,613.28. TripAdvisor added 2.3% to $10.50, as the market digested OpenAI's strategic pivot.
OpenAI will redirect travel booking requests to partner applications through a plugin system rather than processing transactions directly within ChatGPT. The company found that users primarily used the platform for research and trip planning rather than completing purchases, according to multiple reports.
The announcement marks a stunning reversal from October 2025, when OpenAI launched its Apps SDK allowing Booking.com and Expedia to integrate directly into ChatGPT for both research and bookings. At the time, investors feared AI-powered assistants could bypass established travel intermediaries entirely, capturing booking fees and customer relationships.
"This is a clear admission that AI-driven disintermediation of travel agencies is not materializing as quickly as feared," analysts at TipRanks noted in a report Friday. "The OTA business model remains robust."
Booking Holdings, with a market capitalization of $137 billion, remains the dominant player with flagship properties including Booking.com, Priceline, and Agoda. The company's shares have gained 8.5% but remain 20% below their 52-week high of $5,818.24. Expedia, valued at $27 billion, operates brands including Expedia.com, Vrbo, Hotels.com, and Orbitz.
Despite the reprieve from direct ChatGPT competition, the broader travel booking landscape continues to evolve. In March 2026, Lighthouse introduced "The Hotels Network app" within ChatGPT, allowing individual hotels to present live rates and booking links directly to users, potentially bypassing online agencies.
Both Booking and Expedia are investing aggressively in their own artificial intelligence capabilities to enhance personalization and customer service. Expedia executives have stated the company is "experimenting aggressively" with AI applications across its platform.
Analysts maintain a generally positive outlook on the sector. Booking Holdings carries an average price target of $5,816.77, representing 26% upside from current levels, while Expedia's consensus target of $280.85 suggests 12% potential gain.
The rally reflects broader market relief that established travel intermediaries will maintain their central role in the booking ecosystem, even as AI reshapes how travelers research and plan trips. The immediate threat of ChatGPT capturing transaction volume has diminished, though competition from hotel direct-booking initiatives and continued AI adoption across the travel industry remains a long-term consideration for investors.