English 
Vietnamese Remember when OTAs were the unavoidable gatekeepers of online hotel bookings? Those days might be numbered, thanks to a new disruptor in town: generative AI. If you're a hotel executive watching the AI revolution unfold, you're probably wondering what this means for your business – and more importantly, your bottom line.
Contents
- The OTA Squeeze: Then and Now
- Why AI Could Change Everything
- The Million-Dollar Question: Will OTAs Become Obsolete?
- The Real Opportunity for Hotels
- What Should You Do Right Now?
- Final Thoughts
The OTA Squeeze: Then and Now
We all know the story. OTAs swooped in during the internet boom, promising to connect hotels with travellers worldwide. Great exposure, sure, but at what cost? Hefty commissions, loss of direct customer relationships, and constant pressure to compete on their terms.
But here's where it gets interesting: since generative AI applications like ChatGPT burst onto the scene, something unexpected happened. Monthly searches for major OTA brands have reportedly dropped by half. Coincidence? Maybe not.
Read more: Hotels and OTAs: Frenemies, Coexistence, A Marriage of Convenience
Why AI Could Change Everything
Think about how people book hotels right now. They hop between different OTA websites, comparing prices, reading reviews, and trying to figure out which hotel best matches their needs. It's time-consuming and often frustrating.
Now imagine this instead: A traveller simply tells an AI, "I need a quiet hotel in downtown Chicago with a gym and great views of the city, under $300 a night, for next weekend."
Seconds later, they get perfectly matched options, complete with availability and real-time pricing.
No more tab-hopping. No more endless scrolling. Just straight to what they want.
The Million-Dollar Question: Will OTAs Become Obsolete?
Not so fast. Let's be real here: OTAs aren't going down without a fight. They've got some serious advantages:
- Decades of booking data
- Established relationships with hotels worldwide
- Deep pockets to invest in their own AI technology
- Complex systems that handle inventory and pricing
Plus, they're already jumping on the AI bandwagon. The smart money says OTAs won't disappear – they'll evolve.
Read more: Personalisation vs Profit: Which Matters More for Hotels?
The Real Opportunity for Hotels
Here's the exciting part: AI might finally give hotels a fighting chance to level the playing field. Here's how:
1. Direct Bookings Could Make a Comeback
With AI-powered booking systems, hotels can offer the same convenience as OTAs, minus the middleman. Imagine having your own AI assistant that handles bookings, answers questions, and provides personalized recommendations – all while keeping that valuable direct relationship with your guests.
2. Next-Level Personalisation
AI doesn't just book rooms – it remembers preferences, anticipates needs, and creates tailored experiences:
"Welcome back, Ms. Johnson. Would you like your usual corner room on a high floor?"
"Based on your past stays, you might enjoy our new spa package."
"I notice you're arriving late. Shall I arrange for our late-night dining menu to be available in your room?"
Read more: 3 Ways A.I. is Providing Personalised Experience to Hotel Guests
3. Smarter Pricing
Forget static rate sheets. AI can help you:
- Adjust prices in real-time based on demand
- Factor in local events, weather, and competitor pricing
- Identify and target your most profitable guest segments
4. Marketing That Actually Works
AI can help you:
- Predict which guests are most likely to book
- Create personalised offers that convert
- Target ads to the right people at the right time
What Should You Do Right Now?
If you're sitting in the executive suite, here's your action plan:
1. Start Small, But Start Now
- Get a basic AI chatbot on your website
- Experiment with AI-powered pricing tools
- Train your team on new AI technologies
2. Focus on Data
Your data is gold. Start collecting and organizing:
- Guest preferences and behaviour
- Booking patterns
- Revenue data
- Customer feedback
Read more: What You Need to Know about Data Fabric and Do You Need One?
3. Build Your Direct Booking Muscle
- Invest in your website
- Create compelling loyalty programs
- Make it easy for guests to book directly
4. Keep One Eye on the OTAs
- Monitor how they're using AI
- Learn from their innovations
- Be ready to adapt your strategy
Final Thoughts
The AI revolution isn't coming – it's here. While OTAs won't vanish overnight, their iron grip on hotel bookings might finally be loosening. For hotel executives, this is the moment to
act. The hotels that embrace AI now won't just survive this transformation – they'll thrive in it.
Remember: The goal isn't to cut out OTAs completely (let's be realistic). The goal is to finally have a choice. To build direct relationships with your guests. To take back some control over your destiny.
The tools are here. The opportunity is real. The only question is: Are you ready to seize it?
