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
We all know how the story went. OTAs swooped in during the internet boom, promising to connect hotels with travellers worldwide. Great exposure! 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 and Gemini 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
Think about how people are booking hotels right now. They hop among different OTA apps, comparing prices, reading reviews, and figuring 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 Bangkok with a gym and great views of the city, under $300 a night, for next weekend."
Seconds later, they get perfectly matched options, completed with availability and real-time pricing.
No more tab-hopping. No more endless scrolling. Just straight to what they want.
Not so fast. Let's be real: OTAs aren't going down without a fight. They've got some serious advantages:
Plus, they're already jumping on the AI bandwagon. In other words, OTAs won't disappear – they'll evolve.
Read more: Personalisation vs Profit: Which Matters More for Hotels?
AI might finally give hotels a fighting chance to level the playing field. Here's how:
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.
AI doesn't just book rooms – it remembers preferences, anticipates needs, and creates tailored experiences:
"Welcome back, Ms. Harrison. 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
Forget static rate sheets. AI can help you:
AI can help you:
If you're sitting in the executive suite, here's your action plan:
Your data is gold. Start collecting and organizing:
Read more: What You Need to Know about Data Fabric and Do You Need One?
The AI revolution is 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 embrace generative AI.
The goal isn't to eliminate OTAs completely. The goal is to finally have a choice, to build direct relationships with your guests, and 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?