BUSINESS NEWS


Travel tech firms oppose US plans to limit AI pricing


Major travel tech companies claim proposals to regulate AI-driven dynamic pricing by up to 20 US state legislatures will “raise operating costs and increase prices”. The Travel Technology


Association, whose members include Airbnb, Booking, Expedia, Skyscanner, Amex GBT, Amadeus, Travelport and Sabre, warned last week that state lawmakers “across the country” are “advancing ‘price surveillance’ bills aimed at restricting algorithmic and AI driven pricing” and limiting or prohibiting use of consumer search data in pricing. Travel Technology Association


‘Dynamic pricing is essential for managing travel’: Chadwick


chief executive Laura Chadwick described travel as “dependent on real-time pricing tools” and said: “Nearly 20 states have introduced proposals that would restrict or even ban algorithms and AI in pricing.” She claimed: “The impact


would be severe. Dynamic pricing is essential for managing travel. These bills would undermine the industry’s ability to align prices with real-time market conditions.” Chadwick warned “a shift


toward one-size-fits-all pricing” would “harm travellers”.


American Airlines cabin crew call for removal of ‘tone deaf’ CEO


British Airways’ partner American Airlines faces a growing crisis after unions representing pilots and cabin crew demanded the resignation or firing of chief executive Robert Isom. The Association


of Professional Flight Attendants, representing 28,000 American Airlines cabin crew, declared its members have “no confidence” in Isom after he dismissed reports of crew sleeping on airport floors during recent disruption due to storms as “part of the job”.


The union described Isom as


“tone deaf” and the airline as in a “relentless downward spiral” with “weak financial results, operational failures and a flawed strategy”. Separately,


the Airline Pilots Association wrote to American Airlines’ board of directors on February 6 accusing


management of “persistent patterns of operational, cultural and strategic shortcomings”, saying the airline “is underperforming and has failed to define a strategy to correct course”.


Expedia revenue up 8% in 2025 Ian Taylor


Online travel giant Expedia stressed its progress in developing and deploying AI tools when presenting its 2025 results to analysts last week as it reported 8% growth in bookings and revenue year on year and profits up 5% to $1.29 billion. Chief executive Ariane Gorin hailed


“a strong finish to a great year driven by sustained strength internationally and in the US” despite profits in the three months to December down 31% on the previous year. It recorded 60% of its revenue in the US. Expedia’s accommodation


bookings rose 9% in total value to $87 billion and were worth almost $12 billion to the group, or 80% of total revenue. By contrast, flight bookings fell 5% year on year and brought only $407 million in revenue to Expedia, 2% of the total. Gorin told analysts that “changes


travelweekly.co.uk


to how travellers do trip discovery” using generative AI “opens up new growth opportunities for us” and said: “We’re working with all the major platforms, ensuring our brands show up prominently in Gen AI searches and function effectively with agentic [AI] browsers.” He insisted: “We’re


experimenting aggressively. While [the] volume is still small, every additional integration gives us data and learnings about how to better surface our brands and how consumer behaviours are evolving.” Gorin said: “We’re deploying


AI internally to give our teams superpowers. Our product and tech teams are using AI to design and build products. Our supply teams are leveraging AI to speed up inventory onboarding, and our service team is using AI to resolve traveller issues faster. I see a lot of potential, especially in using AI to make ads more effective.”


Expedia profits rose by 5% to $1.29 billion last year


He added: “AI search opens up


possibilities to reach more travellers and as there is more context in those searches, there is an opportunity to better target and better convert. We’re doing work in answer engine optimisation [ranking in AI search] and work with agentic browsers.” At the same time, Gorin admitted


“we’re not seeing material changes right now” and told analysts: “We’re keeping a close eye on costs.”


He added: “Anybody who tells


you their platform is ‘done’ [ready for AI] is not [being] truthful.”


L•Swiss-based online agency group astminute, formerly Bravofly,


reported a fall in annual profit to €11.6 million despite an 11% increase in sales in 2025. It said the introduction of an AI-powered assistant in the UK marked “a significant step in the group’s automation strategy”.


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