The travel experience is evolving rapidly. Expedia and Booking.com are no longer just platforms but have become conversational partners within ChatGPT. Through their new apps, users can compare hotels, check availability, view maps and prices without leaving the chat.
While many predicted that AI might challenge the role of OTAs, the reality is quite the opposite. Conversational AI is strengthening their dominance. Over one-third of ChatGPT’s first app partners are travel platforms, showing that AI isn’t replacing them but expanding their reach, bringing users closer to the booking moment.
With access to 800 million users through the ChatGPT platform, OTAs now have a new distribution channel. From TripAdvisor to Uber and TheFork, the trend is clear: travel search is no longer linear. Travelers want instant answers and seamless experiences, and AI delivers them in a natural, conversational way.
For hotels, this trend is both a warning and an opportunity. The ability to appear instantly in AI-driven search results and provide direct value to customers through loyalty incentives, personalized experiences, and AI-driven support will determine which brands remain visible and which lose market share.
Airbnb and the Redefined Concept of Loyalty
Airbnb is following a similar path, launching its first loyalty program that breaks away from traditional points-based models. Its strategy focuses on flexible perks, experiential rewards, and the integration of hotels and services, creating an ecosystem where value is not just measured in nights stayed but in the overall traveler experience.
For hotels, this shift means that loyalty is no longer limited to free nights or discounts. It now extends to interaction, experience, and convenience. Brands that adapt quickly, leverage AI, and invest in direct booking strategies will have the competitive edge in tomorrow’s travel market.
Source: Hotel Industry Insights