AI is not disrupting these giants, the opposite is the case
AI is apparently taking over every industry, I’m saying that with a smile, obviously, because AI is a clear service enhancement tool for almost every sector and company. Today, I want to focus on travel. The market decided some time ago that Booking and Airbnb are “doomed” because artificial intelligence will plan our trips for us. These pioneers suggest that a chatbot will replace your next hotel search. But let’s be honest for a second: that’s not how the industry works. Nobody is handing over decades of customer data, inventory access, and pricing control to some algorithm that might or might not show your hotel room at the right price. Trust in these systems is extremely low. One the other side of the process, no customer would want to put all their personal information into some random chatbot. Justified, considering even Sam Altman warned not to share sensitive details, since they are used to train LLMs and could be requested by law enforcement.
Starting with Booking Holdings, which delivered a surprisingly strong quarter. Room nights grew, international demand stayed healthy, and margins held up despite lower consumer confidence. The company’s AI narrative was actually the opposite of what the headlines imply. Booking is using AI to improve conversions, reduce cancellations, and expand its “connected trip” model. AI isn’t replacing Booking; it’s enhancing it. With a forward P/E below 20 based on FY26 earnings, this isn’t some speculative tech bet. It’s a dominant, cash-rich marketplace with sticky supplier relationships and one of the most profitable moats in the travel world. Investors price it as a dead company, Adobe-style, but Booking is a net winner from AI, not a loser.
Then there’s Airbnb. This brand has practically become a synonym for short-term rentals, from regular city apartments to exquisite tree houses. Growth remains solid, even though management guided cautiously for the next quarters. Forward P/E sits around 25 on FY26 estimates, which is fair, but not cheap, given the strong brand name and unique asset-light model. The company has its flaws, like pricing sensitivity, regulation, slower U.S. growth, and negative popular opinion in many tourist regions, but it’s nowhere near the existential risk the market’s been dramatizing.
Here’s what matters: both stocks are being traded on emotion, not numbers. The travel economy is doing well, even in times of uncertainty and volatility. Booking is priced like a stable compounder, Airbnb like a growth brand. Even though, Booking has higher growth and arguably more of a tech focus. Besides, this “AI takeover” fear says more about market psychology than it does about business fundamentals.
For my part, I used FY26 earnings because that’s when profitability is expected to meaningfully accelerate again after a couple of slower years for bottom-line growth. The near-term macro noise and normalization will pass. Travel isn’t going away, and AI isn’t stealing it.
AI might book your next vacation, but it’ll likely do that within the confines of a well-established player. I am looking into Booking specifically and might start building a position soon. The risk/reward looks very compelling, all things considered.
