Travel Through the Lens of AI with with Booking.com CEO Glenn Fogel
Summary
This episode centers on how Booking Holdings is using AI to improve travel planning, customer support, and booking efficiency rather than trying to replace the travel marketplace itself. Glenn Fogel reflects on Booking’s long arc from the dot-com crash to becoming a global travel giant, using that history to argue that durable advantage only comes from continuous innovation. A major focus is Booking’s AI assistant, Penny, which is already showing measurable traction through faster searches, better conversion, and improved customer outcomes. The conversation also covers the company’s large-scale investment strategy, including roughly $700 million in AI and related technology spending alongside buybacks and dividends. Finally, Fogel addresses the workforce implications of AI, emphasizing that companies should upskill employees so they can transition into new roles as automation changes the nature of work.
Key Takeaways
- 1Booking views AI as a practical tool for making travel easier, cheaper, and better—not as a substitute for the travel platform itself.
- 2Booking’s AI assistant, Penny, is showing real product-market traction through strong usage growth and improved business metrics.
- 3The company is making major long-term bets on technology, with about $700 million allocated to AI and related investments while still returning capital to shareholders.
- 4Fogel believes no company has a permanent competitive moat; innovation can quickly erase today’s advantages unless the business keeps building.
- 5AI will automate some jobs, but companies need to upskill workers so they can move into new roles instead of being displaced.
Notable Quotes
""There isn't no such thing as a note.""
""The only way to win long-term is to continue to develop new services.""
""Our stock is now training at a dollar a share... In nine months, our market cap is now down to just a couple of hundred million.""
""Penny adoption... has doubled every month for the past few months.""
""We have a competitive advantage on some areas, absolutely. But that's going to go away tomorrow.""
Episode questions
Why does Glenn Fogel think AI matters so much for travel?
He sees AI as a way to reduce friction in a highly complex category where travelers often struggle to plan, compare, and adjust trips. In his view, AI can make travel easier, cheaper, and better while improving outcomes for partners and customers.
What evidence does Booking have that its AI assistant Penny is working?
Fogel says Penny adoption has doubled every month for several months. He also points to better conversion, faster search, improved paths to booking or cancellation, and higher customer success.
How does Booking think about spending on AI versus returning cash to shareholders?
Booking evaluates whether reinvestment will generate enough ROI to justify it. If not, it returns capital through buybacks and dividends, which Fogel says is appropriate when shareholders can deploy the cash better themselves.
What is Fogel's view on AI and job displacement?
He accepts that AI will eliminate some jobs, just as previous technologies did, and says the real challenge is the pace of transition. His answer is to focus on retraining and upskilling so workers remain employable in new roles.