AI’s Impact on Travel: Concerns Over Dominance by Booking.com and Expedia
The integration of AI in the travel industry, led by platforms like Booking.com and Expedia, raises significant concerns about potential monopolies. These companies are embedding AI tools that could control the entire travel booking process, possibly marginalizing independent hotels that may struggle to reach guests without paying hefty commissions.
The European Union’s Digital Markets Act (DMA) aims to regulate big tech’s influence, but currently excludes AI assistants like ChatGPT, which increasingly act as gatekeepers in travel bookings. This dominance could mirror the challenges faced by hotels during the OTA era, limiting their control over guest interactions.
Calls for extending DMA protections to AI assistants emphasize the need for equitable access for suppliers and transparent ranking systems. As AI continues to shape the future of travel distribution, regulatory oversight is essential to foster competition and safeguard the interests of independent hotels against monopolistic practices. Collective action is crucial to ensure innovation benefits all stakeholders in the travel sector.
