OpenTable launches AI-powered Concierge to enhance dining decisions

SAN FRANCISCO - Restaurant technology company OpenTable introduced "Concierge," a new generative AI assistant designed to provide diners with instant information about restaurants in its network, according to a press release issued Tuesday.

The feature, embedded within restaurant profiles on the platform, offers users details about more than 60,000 restaurants, including directions, menu recommendations, and information about dietary accommodations.

OpenTable, part of Booking Holdings Inc (NASDAQ:BKNG), a $187.63 billion market cap company currently trading near its 52-week high, developed the tool to address research showing that 54% of Americans research restaurants before booking, spending an average of 21 minutes doing so. According to InvestingPro analysis, BKNG maintains impressive gross profit margins of 86.6% and shows strong financial health metrics. The company also reported that 27% of consumers have abandoned potential bookings because finding information was too difficult.

"Today’s diners are extremely savvy, and oftentimes they want to know exactly what to order and whether specific needs can be met before they ever step through the door," said Sagar Mehta, CTO of OpenTable, in the statement.

The technology is powered by OpenTable’s restaurant data combined with Perplexity and OpenAI APIs. The company indicated that future versions of Concierge will be able to book reservations on behalf of users.

This launch is part of OpenTable’s broader investment in AI technology, which includes partnerships with OpenAI, Microsoft’s Copilot, Amazon’s Alexa+, and voice AI platforms Slang AI and PolyAI.

The company, which helps fill 1.8 billion restaurant seats annually according to the release, positioned the new feature as beneficial for both consumers seeking information and restaurants looking to convert browsers into customers. With revenue growth of 9.47% and a perfect Piotroski Score of 9 according to InvestingPro, which offers 12 additional exclusive tips and comprehensive analysis through its Pro Research Report, BKNG continues to demonstrate strong market leadership in the travel and hospitality sector.

In other recent news, Booking Holdings has garnered attention from analysts and investors with several significant updates. BTIG raised its price target for the company to $6,250, maintaining a Buy rating, citing an increase in reservation volumes and expectations to surpass second-quarter guidance. Similarly, JPMorgan increased its price target to $6,000, maintaining an Overweight rating, and highlighted Booking Holdings’ strong position in the online travel sector. Tigress Financial also lifted its target to $6,100, upholding a Strong Buy rating, and emphasized the company’s advancements in artificial intelligence as key to enhancing sales growth and operational efficiency. Piper Sandler, however, has maintained a Neutral stance with a price target of $5,077, noting the company’s focus on cost control and topline growth.

In terms of strategic partnerships, Booking Holdings announced an eight-year extension of its commercial partnership with Etraveli Group, aiming to enhance global flight booking capabilities. This extension is part of Booking.com’s efforts to strengthen its position in the flight booking sector. Despite potential challenges from inflation and macroeconomic factors, analysts from JPMorgan have not observed significant strain on travel demand. These developments reflect the company’s strategic positioning and ability to execute its growth strategies effectively.

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