Artificial intelligence (AI) technology is profoundly reconfiguring the global hotel industry, but the promise of eliminating intermediaries is clashing with a complex reality. Contrary to initial estimates, Google’s first list of partners for agentic AI bookings includes Booking.com and Expedia, suggesting that the new infrastructure expands the reach of online travel agencies (OTAs) rather than eliminating them.
An analysis published by hospitality.today highlights that agentic AI adds a layer on top of OTAs, concentrating control over the customer relationship instead of returning it to hotels. In parallel, a study conducted by h2c and Pertlink shows that 86% of European hotel chains use AI tools, although 80% lack a formal strategy due to skills shortages and poor data infrastructure. To support hoteliers, Lighthouse has acquired Hotelrank.ai to track the visibility and positioning of accommodations on ChatGPT and Gemini. At the same time, a World Panel analysis raises questions about the end of the traditional pay-at-hotel model, amid the digitalization of payments and agentic bookings.
In the global tourism market, WTTC data indicates a 1.8% increase in tourism GDP in Mexico for 2025, while the US and Canada are experiencing declines in visitor spending. In the corporate sector, BCD Travel has launched the Model Context Protocol (MCP) framework for AI travel agents. A Booking.com study reveals that 45% of LGBTQ+ business travelers hide their identity for safety reasons. In the youth segment, CBRE reports an underrepresentation of Generation Z in lifestyle hotels in Asia-Pacific, and a Cloudbeds analysis shows that hostels’ reliance on OTAs has reached 73.7% globally, with dorm bed rates dropping by 8.2%.
At the administrative level, Heather Moses has been appointed Chief Marketing Officer, Mary Bowens has become General Manager, and Scott Eddy has taken on the role of Director of Hospitality Storytelling and Brand Strategy. In the property portfolio, Hutton Hotel Nashville has joined the Tribute Portfolio (Marriott), and The Berkeley Richmond has entered the Outset Collection (Hilton).
Frequently Asked Questions
How is AI affecting online travel agencies (OTAs)?
Instead of eliminating OTAs, agentic AI is expanding their reach by adding a layer on top of them, keeping control over customer relationships.
What percentage of European hotel chains use AI?
According to a study by h2c and Pertlink, 86% of European hotel chains use AI tools, but 80% lack a formal strategy due to skills and data infrastructure gaps.
What is the trend regarding hostel bookings and OTAs?
Hostels’ reliance on OTAs has reached 73.7% globally, while dorm bed rates have decreased by 8.2%.