Egencia, the business travel arm of the Expedia Group, announced the launch of a new hotel policy configuration feature that uses an AI-powered algorithm to automatically and dynamically adjust hotel price caps according to the local market median. It is also the first feature of its kind, according to the company, that is personalized to a company's travel policy groups and its corporate booking behavior. Most companies set hotel rate caps (or 'per diems') manually by city or destination, a time-consuming process that involves analyzing previous booking behavior and investigating local market rates. As a result, said the announcement, corporates typically prioritize setting price caps for the biggest or most frequently visited destinations but potentially lose out on savings in smaller towns or cities. Egencia's new dynamic hotel rate cap feature uses machine learning to automate this process by aggregating real-time hotel prices in a specific location to identify a market median and using it to configure the appropriate price-per-night cap for any traveler booking a room in that town or city. John Sturino, vice president of product, said the company is passionate about how artificial intelligence and machine learning can transform business travel, and are making significant investments in this area. The dynamic hotel rate cap feature leverages these technologies, he said, “to help companies and travelers manage uncertainty and respond to fluctuations in a volatile market.”