The emergence of autonomous AI agents poses a significant threat to leading online travel agencies (OTAs) like Booking.com and Expedia, which primarily operate on commission-based models. Max Niederhofer from Heartcore Capital highlighted how hotels could benefit from eliminating these commissions—potentially around 20%—allowing them to enhance customer experiences, such as offering better rooms. Many hotel industry players recognize the potential of AI to decrease reliance on OTAs, which might lead to sustained pressure on OTAs’ profit margins. However, the European hotel group HOTREC cautioned about the risk of creating a new dependency cycle with this technology. As AI in the travel sector is still nascent, the full impact on OTAs and the hotel industry remains to be seen. Businesses must adapt to these changes to stay competitive and leverage emerging technologies effectively, ensuring they are aligned with SEO strategies for maximum online visibility.
Source link

Share
Read more