Introduction#
The travel industry is undergoing significant changes as artificial intelligence (AI) begins to influence how customers are acquired. While geopolitical issues currently affect online travel agencies (OTAs), the long-term implications of AI are becoming increasingly important.
Suppliers Embrace AI#
Major hotel chains like Accor, Hyatt, and Wyndham are turning to AI to enhance customer acquisition at lower costs. By establishing a presence on platforms such as ChatGPT, these suppliers aim to reduce the high commissions they typically pay to OTAs. Hotel technology companies are also playing a role by connecting hotel inventories directly to AI platforms. Currently, about 75% of hotel bookings are managed through channel managers, allowing independent hotels to tap into AI-driven distribution and challenge the established dominance of OTAs.
Revenue Models Matter#
The future of OTAs in the age of AI will largely depend on the revenue models that emerge. If AI platforms depend on advertising, OTAs could maintain their relevance by paying for prominent placements, similar to how they operate on traditional search engines. However, if subscription or user-funded models, like those used by Perplexity, become the norm, they could disrupt the industry. These models do not require commissions from suppliers, potentially leading to a scenario where traditional OTAs are sidelined due to a lack of fees.
Trust and Adaptation#
In response to these changes, OTAs such as Booking and Expedia are highlighting a