Google is one of the bright spots in stock markets today, as it rallies 2.8% following filing's showing the Berkshire Hathaway took a $5 billion stake in the third quarter.
There are also strong rumors that Google is about to launch something amazing with Gemini 3, potentially taking a big lead in the AI space. Given that it already has search, data and much of the world's email, it could soon be in a dominant position.
We may have just got a sense of what that could look like for the rest of the world. Google today revealed a feature that lets people plan travel via its AI assistant. It also expanded flight deals with a change to Google flights that's slowly rolling out globally.
Here is the reaction:
- Expedia -6.5% (worst on the Nasdaq 100, third-worst on the S&P 500)
- Booking -4.3%
- UAL -5.6%
- DAL -4.4%
- JETS ETF -3.4%
The fear is that Google may take some of the business itself and may also erode airline margins as a one-stop shop for travel.
In the future, we’ll also make it possible to finish booking flights and hotels directly in AI Mode. We’re working with industry partners to build an experience where you can simply describe what you’re looking for to compare different flights or hotels and browse helpful information like schedules, prices, room photos, amenities and reviews. You’ll be able to follow up and refine your options, and then once you’re ready, you can quickly complete the booking with the partner of your choice.
Google did note that it's working with companies like Booking.com but as you can see from the market reaction, the fear is that Google eventually cuts out the middle man, or at least squeezes margins.
