What the rise of AI-driven booking means for hotel visibility, distribution power, and margins
Dec 19, 2025
Artificial intelligence is beginning to influence how travelers search for and book hotels, with major implications for distribution. Analysts argue that large online travel agencies such as Booking Holdings and Expedia are well positioned to become primary partners for AI-driven booking tools due to their global inventory scale and mature integrations.
For hoteliers, this reinforces the role of OTAs as key intermediaries rather than displacing them in the near term. The article highlights how AI may amplify existing distribution dynamics rather than fundamentally resetting them.
Key takeaways
- OTAs remain central to AI booking flows: AI systems need reliable, real-time access to broad hotel inventory, pricing, and availability, which Booking and Expedia already provide at scale.
- Inventory aggregation is a strategic moat: Decades of contracting, connectivity, and rate management give major OTAs an advantage that individual hotels or newer platforms cannot easily replicate.
- AI is unlikely to bypass intermediaries soon: Fully autonomous booking still depends on structured data, payment handling, and customer support, reinforcing the role of established distribution partners.
- Paid visibility may intensify: AI-driven booking models are expected to resemble paid search dynamics, potentially increasing competition and cost pressure for hotel visibility.
- Brand and content still matter: Platforms with trusted hotel content, reviews, and rich descriptions are better positioned to be surfaced by AI assistants.
- Distribution power could concentrate further: As AI tools rely on fewer, deeper integrations, hoteliers may see more volume routed through a smaller number of dominant platforms.
Source: BTIG analyst Jake Fuller
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