Two Wall Street analysts have argued that the selloff seen in online travel stocks on Monday “overstates” the level of disruption AI would cause to businesses in the sector.
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U.S. tech giant Alphabet’s (GOOGL) Google yesterday launched a new AI search tool to help users plan complete trips by searching for flights, hotels, and deals all in one place. The new tool comes with an updated Flight Deals feature that helps travelers find last-minute offers and affordable destinations.
Reacting to the development, investors sold off shares in online travel-related stocks. The following stocks fell at the close of trading on Monday.
- Booking Holdings (BKNG) dropped 4.83% to $4,804.01
- Expedia (EXPE) fell 7.75% to $244.90
- Trip.com (TCOM) shrank by 1.58% to $70.89
- Airbnb (ABNB) shed 3.62% to reach $117.60
Will AI Disrupt the Online Travel Industry?
BTIG analyst Jake Fuller argued that while he “gets the market’s reaction,” the risks of disruption by this AI tool are “overstated.” Fuller pointed out that Google has always collaborated with major travel chains in the industry. In addition, the four-star analyst further noted that these chains comprise a significant minority of the global accommodation supply.
KeyBanc analyst Sergio Segura also believes that the market reaction overstated AI risks in the sector and even underappreciates the value of online travel platforms. Segura contended that firms with extensive worldwide reach, unique offerings, and highly effective marketing are “best insulated” from such disruption.
Ranking companies less likely to be affected by such a disruption, the analyst believes Booking Holdings tops the list. Segura recently maintained his Overweight rating on BKNG stock and raised his price target by 3% to $6,630 per share, at about 38% upside. The analyst pointed to the company’s strong third-quarter 2025 results as a reason for the move.
The KeyBanc analyst also believes that Airbnb, followed by Expedia, is well-positioned to fend off disruption from AI.
What Are the Best Travel Stocks to Buy?
Using the TipRanks Stock Comparison tool, investors can evaluate how all the online travel stocks mentioned in this article compare, based on the assessment of Wall Street analysts. See the chart below.
