Expedia and Booking stocks climb as United Airlines bars AI booking bots

In brief

• United Airlines will block personal AI assistants from making reservations on its digital platforms.
• The airline cites data security risks and possible conflicts with federal travel rules.
• Expedia and Booking Holdings shares rose on Wednesday, with Expedia up as much as 3.1 percent.

United shuts AI agents out of its booking tools

United Airlines said on Wednesday it would block personal artificial-intelligence assistants from making reservations on its digital platforms, citing data security (United won’t let your AI agent book your flight – The Verge) (United Airlines bans AI agents from booking flights on behalf of travelers – Hacker News) (United Airlines moves to block AI agents from its platform over security concerns – Investing.com). The airline argued that handing account logins, including payment details, to outside AI tools could expose sensitive information. It also warned that automated actions might lead to purchases travelers did not intend, changes to accounts, or spending of MileagePlus miles.

Regulatory worries

United further contended that using an AI agent to check in for a flight could run afoul of federal requirements. Those rules call on travelers to personally confirm that their luggage holds no banned items. The carrier intends to restrict access on its own channels and through travel agencies and aggregators, and to amend its booking and ticketing policies accordingly.

Shares move higher

Expedia Group and Booking Holdings stock advanced during Wednesday's trading. Expedia rose as much as 3.1 percent, and Booking gained as much as 1.1 percent (Expedia and Booking shares rise after United Airlines blocks AI booking – Investing.com). Investors appear to view the decision as favoring intermediaries that keep control of the booking process as AI agents spread.

A split across the industry

Companies are responding to AI agents that can plan and book trips in different ways. Expedia and Booking, both online travel firms, are working with OpenAI, the maker of ChatGPT. United said it had not yet seen many customers use AI agents to book flights, in line with what other businesses have reported.