Booking CEO Unfazed by ChatGPT and AI Competition

Booking Holdings CEO Glenn Fogel has addressed the growing speculation about the role of AI in the travel industry, suggesting that fears of companies like Booking being replaced are premature.

An Overblown Threat

Fogel acknowledges that hotels will inevitably use tools from OpenAI and other AI developers to secure direct bookings, similar to how they currently use Google. However, he believes the idea that this would entirely cut out established intermediaries is an exaggeration.

"I think that is an overblown threat at this time," Fogel stated during the company's third quarter earnings call.

Underestimating Industry Complexity

Fogel cautioned that many observers are sometimes "a little naive" about the deep complexities of the travel business. He argued against the simplistic idea that a new player can simply "put up a name" and disintermediate a market leader.

"That's not the way the world works," Fogel explained. He drew a parallel to past predictions about Google's potential to dominate the sector, adding, "And if it did work that way, we were anticipating a long time ago, Google would have taken this thing over a long time ago."

Ultimately, Fogel expressed confidence in his company's current and future position in the market.