AI Disruption Trade Drives Divide in Travel and Leisure Stocks

Fears around AI disruption have created a dramatic divide in the travel and leisure sector, with the stocks of online-booking platforms collapsing while traditional hotel operators have rallied.

The price action has been stark: TripAdvisor Inc. has plunged 29% this year, sinking to an all-time low this week after its earnings disappointed. Booking Holdings Inc. and Amadeus IT Group SA have each lost 22% this year. The latter was downgraded by Citi analysts, who said they don’t expect much “near-term payback” from the European travel tech provider due to increased AI-disruption risks.