Google launched a new AI search tool that helps users plan detailed travel trips. The feature finds flights, hotels, and deals in one place. According to TipRanks, Google stock rose 3.11% on Monday while travel stocks fell. Expedia dropped 7.75%, Booking Holdings fell 4.83%, and Trip.com declined 1.58%.
How the AI Tool Works
Users can enter travel ideas in AI mode and click „Create with Canvas.“ The tool shows suggestions in a side panel. People can ask for more ideas, check flight times, and return later to keep planning. Google also upgraded its Flight Deals feature to help travelers find last-minute bargains and budget-friendly places.
The company is adding a booking feature that reserves restaurants, buys event tickets, or books spa appointments. It searches across different websites and finalizes bookings through partners like OpenTable, Ticketmaster, and StubHub. Soon, travelers will book flights and hotels directly through the AI tool. Partners include Expedia, Booking Holdings, Choice Hotels, and Marriott.
Market Reaction and Stock Outlook
Wall Street Views Google Favorably
Google says it plans to work with travel companies of all sizes. The goal is to offer the best options to users. The new tool provides a more interactive and personalized experience than traditional search.
Wall Street analysts have a Strong Buy rating on Google stock. The rating comes from 30 Buy recommendations and seven Hold ratings. These were assigned in the past three months. The average price target is $312.29 per share. This suggests 9.8% upside potential from current levels.
The drop in travel stocks shows market concern about competition. Companies like Expedia and Booking Holdings face pressure as Google enters their space. Choice Hotels fell 3.12% and Marriott dropped 0.99%. Live Nation Entertainment, which owns Ticketmaster, declined 2.53%. StubHub fell 13.79% as investors worry about the impact of Google’s direct booking feature.
