Artificial intelligence is rapidly becoming a core companion for travelers, replacing forums, guidebooks and even human agents as millions rely on AI platforms for trip design, budgeting and real-time advice. As adoption grows—especially among younger travelers—AI’s ability to personalize and optimize trips is expanding into environmental decision-making.

Tourism boards are also integrating AI into their marketing and visitor-engagement strategies, positioning sustainability features as a competitive advantage. While AI promises more efficient, cost-effective and environmentally conscious travel, it also raises concerns around privacy, reduced human connection and shifts in tourism jobs.

Booking Holdings views artificial intelligence as a way to expand digital travel demand rather than threaten its core business. The company believes large horizontal AI models will inspire and generate leads but will stop short of completing transactions, meaning they will not become merchants of record. This gap positions Booking.com and its brands to control the full trip experience, from planning and booking to service and post-trip engagement, strengthening wallet share and brand loyalty.

Key takeaways

AI inspires but does not transact: Large AI models are expected to generate leads and recommendations but avoid becoming merchants of record, creating a handoff advantage for platforms like Booking.com.
Vertical agent experience: Booking Holdings aims to keep travelers inside a unified agentic environment where inspiration, itinerary planning, booking, and support are delivered end-to-end.

"AI-driven automation is accelerating job reductions across the travel industry, with airlines, online travel platforms, and service providers citing technology as a driver of cost-cutting and organizational streamlining.

Some companies have explicitly linked layoffs to AI-enabled efficiencies, while others have avoided the term but connected job cuts to restructuring, performance optimization, or productivity gains from intelligent agents and automation. These changes disproportionately affect administrative, corporate, and entry-level roles, even as companies reinvest in AI, automation, and specialized talent needs.

The broader challenge for travel employers is to balance gains in efficiency with long-term workforce development and future leadership capacity."

"A recent report reveals how a traveller booking through Booking.com nearly ended up stranded when her reservation was cancelled after the hotel — and Booking.com — claimed the posted rate was a mistake.

Such incidents are becoming more common around major events, when automated pricing systems allow hotels to relist rooms at dramatically higher prices.

The article argues that third-party booking platforms often shift the risk onto travelers, leaving them with limited recourse and forced to scramble for alternatives.

Key takeaways

Confirmed bookings are not always secure: Even after paying and receiving confirmation, travelers can be notified of cancellations later — often with little to no advance warning.
Rate errors disproportionately affect high-demand periods: Hotels frequently cancel or reprice bookings around major events, exploiting automated pricing systems to charge premium rates for the same rooms."

Expedia Group is significantly expanding its use of AI to improve marketing effectiveness, traveler engagement, and internal productivity. The company is embracing generative AI platforms as new distribution channels while transforming its SEO approach toward answer engine optimization and organic traffic strategy.

Internally, AI accelerates creative production, improves experimentation velocity, and supports decision-making—while requiring a strong focus on accuracy and reliability. Leadership emphasizes curiosity, adaptability, and a growth mindset to navigate rapid change and maintain competitive advantage.

"Amazon has filed a landmark lawsuit against Perplexity that will determine whether autonomous AI agents can shop, compare travel inventory, and complete bookings on behalf of users without permission from the platforms they access. The ruling will define how “agentic commerce” works in travel, where AI systems could organize itineraries, fetch rates, and transact automatically based on user intent.

For hoteliers, the outcome will influence who controls access to live rates and availability, who owns the guest relationship, and how distribution channels evolve. The decision will determine whether today’s controlled, API-driven ecosystem stays intact—or whether autonomous agents open new pathways that challenge traditional intermediaries.

Key takeaways

Legal framework for AI travel agents: The lawsuit will determine whether autonomous AI systems can legally search and book rooms on behalf of customers without retailer or platform consent, reshaping how hotels manage access and commercial conditions."

Booking.com has developed agentic AI systems in a careful, step-by-step way instead of adopting one large, expensive model. The company mixes small, travel-specific AI models for fast answers with larger models when deeper reasoning or accuracy is needed.

According to the company, this modular setup has already doubled accuracy in booking-related retrieval, ranking and service interactions, and it allows more customer conversations to be automated without losing quality.

Booking.com is also using AI to personalize search experiences at scale while being careful about privacy and memory, so customers receive useful help without feeling monitored.

Key takeaways

Smarter service automation: Booking.com doubled topic detection accuracy, which automates more routine inquiries and frees human agents to handle complex, guest-critical situations.
Better guest personalization: Travelers can describe what they want in free text (e.g., “room with a hot tub”), and the platform instantly applies personalized filters instead of forcing customers to search manually.

"Generative and agentic artificial intelligence (AI) is poised to change how hotels are discovered, booked, and serviced — potentially altering the balance between suppliers and online travel agencies (OTAs).

Industry leaders at The Phocuswright Conference in San Diego argued that AI will create new booking entry points that allow hotels to connect more directly with travelers, reducing intermediaries’ dominance. Conversational interfaces like ChatGPT now centralize research, questions, and recommendations in a single flow, which could replace the fragmented experience of browsing dozens of websites before making a decision."

Last month, Sam Altman sat down with economist Tyler Cowen and outlined how ChatGPT will transform hotel booking. Not someday. Now.

Metasearch is evolving beyond price: Skyscanner is repositioning itself from a transactional comparison tool to an inspiration-driven discovery platform.
AI will power earlier-stage influence: The company plans to use LLMs and smarter content layers to guide travelers before they know when or where they want to go.
Discovery beats discounting: Hotels that lean into storytelling, visuals, and thematic experiences will gain visibility before travelers reach the rate-comparison mindset.
Data quality is becoming competitive: AI-powered discovery tools rely heavily on clean, structured hotel content — from photos to amenity data to room naming.
Hoteliers must act now: Five concrete steps — from content upgrades to offers to direct booking UX — position hotels to win in the new inspiration economy.