The company signals a partnership-first approach as AI-driven booking reshapes travel distribution
Nov 21, 2025
Google clarifies that its new agentic AI tool for flights and hotels is designed to assist users while preserving OTA and hotel partnerships. The company stresses that it has no intention of becoming an online travel agency and will not act as merchant of record. Despite this reassurance, investor reactions and industry concerns highlight the disruptive potential of AI-driven booking workflows. The coming year will test how travelers and partners adapt as agentic systems begin handling more complex booking tasks.
Key takeaways
- No OTA ambitions: Google states clearly that it does not plan to become an online travel agency and will not manage transactions or customer relationships.
- Partnership-driven development: The agentic tool is being built alongside major OTAs and hotel groups, with plans to include smaller players through tech-provider integrations.
- Dynamic pricing challenge: Constantly shifting airfares and hotel rates require deeper system integrations to ensure accurate, real-time pricing.
- Agnostic offer presentation: Google says results will be user-first, without preferential treatment for direct suppliers or aggregated listings.
- Impact on website traffic: AI Overviews have already reduced click-through rates, and agentic booking could further limit visits to travel websites.
- Limited autonomy—for now: Users must still confirm purchases, but Google expects more advanced agent capabilities to emerge within the next year.
- Rising competitive pressure: OTA stocks fell on news of Google’s plans, reflecting concern that AI-driven booking may alter traveler behavior and distribution economics.
- 2026 as a turning point: The next year will determine whether travelers trust Google with higher-value bookings and whether industry partners remain comfortable with the shift.
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