Is ChatGPT no longer threatening jobs? OpenAI halts direct reservations, giving online travel giants a breather

Bloomberg News has learned that on Thursday, online travel platform stocks generally rose. Previously, there were reports that OpenAI is slowing down the integration of direct booking features into ChatGPT, easing investors’ concerns that AI chatbots might eventually replace travel agencies.

Boosted by this news, Expedia (EXPE.US) shares rose over 13%, while Booking Holdings (BKNG.US) and TripAdvisor (TRIP.US) increased by 8% and 2%, respectively.

The rise was triggered by a report stating that OpenAI found that users query and research products through ChatGPT but do not complete purchases on the platform.

The report quoted an OpenAI spokesperson as saying the company will shift its focus to enabling third-party dedicated applications connected to ChatGPT to handle payments, rather than completing transactions directly within ChatGPT.

OpenAI has not responded to requests for comment on this report.

Previously, investors and analysts widely worried that generative AI tools could become the main entry point for travel planning and booking, bypassing intermediaries like online travel agencies.

Bernstein analyst Richard Clarke stated in a research report, “We see OpenAI’s latest move as a positive signal for online travel platforms.”

“This means Booking and Expedia can still reach consumers through AI platforms, and the risk of disintermediation has decreased,” Clarke added.

Notably, Expedia and Booking were among the first companies to integrate ChatGPT when OpenAI launched its plugin program in 2023.

“We believe that the shift from built-in booking functions to in-app traffic redirection may mark the beginning of the decline of AI threats to platforms like Booking,” Mizuho analyst Lloyd Walmsley said in a research report.