How online travel agents are evolving to stay ahead in the age of AI agent bookings
Apr 2, 2025
The rise of AI agents like OpenAI’s Operator and Perplexity’s answer engine is transforming online hotel bookings by offering hyper-personalized travel planning and even completing bookings. This challenges the traditional dominance of OTAs (Online Travel Agents), raising concerns about their future. However, the article argues that rather than being replaced, OTAs may evolve into data hubs powering these AI agents – maintaining their relevance by embracing innovation and adapting their technology strategies.
Key takeaways
- AI agents are booking-capable: Tools like Operator don’t just recommend – they can complete bookings, only requiring human help for logins, payments, or CAPTCHAs.
- OTAs remain resilient: Despite fears, OTAs continue to adapt, as they did during the mobile revolution, and are likely to evolve further – not disappear.
- From revenue to traveler management: AI enables ultra-personalized pricing and guest experiences, shifting focus from managing rates to managing individual travelers.
- Fragmentation and future centralization: AI may initially fragment the travel tech stack further, but a wave of consolidations is expected to bring centralization powered by AI.
- AXO will matter more than SEO: As AI agents become the primary interface for bookings, optimizing websites for agent experience (AXO) could surpass traditional SEO in importance.
- Revenue managers must evolve: The role of revenue manager may disappear or shift unless professionals adapt and find ways to work alongside AI.
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