Concerns about artificial intelligence disrupting the travel industry have triggered a sharp split in the sector, dragging down shares of online booking platforms while boosting traditional hotel operators.

The contrast has been striking, according to a report by Bloomberg on Friday.

In the report, the shares of TripAdvisor Inc. has tumbled 29 per cent this year, touching a record low after weak earnings, while Booking Holdings Inc. and Amadeus IT Group SA are both down 22 per cent.

Amadeus was also downgraded by analysts at Citigroup, who cited mounting AI disruption risks and limited prospects for near-term gains.

The rout in several travel stocks intensified in early February, with investors pulling out of companies seen as most exposed to AI-driven disruption.

A report by
Forbes states that AI’s future holds limitless possibilities, offering applications that could significantly simplify everyday life and positively shape humanity’s path.

Meanwhile, Bernard Marr and his firm note that AI’s transformative effects will extend across society, bringing wide-ranging economic, legal, political, and regulatory consequences for all types of jobs and industries, issues that demand active discussion and preparation.

According to the report, the wave of selling, initially triggered last week by new tools unveiled by Anthropic PBC, has since rippled across other sectors, hitting IT services, wealth management firms, real estate platforms and logistics companies.