Automatic - 10 Minutes News for Hoteliers - Page 188

2 min

Four futures of travel in the age of AI agents

🛠 May 22, 2025, digital travel is shifting rapidly. Google, Mastercard, and OpenAI are deploying AI agents to research, book, and pay for travel autonomously. Four scenarios may shape travel's future: OTAs enhance interfaces or get bypassed; AI Travel Concierge maintains OTA relevance; AI Distribution strengthens brand ecosystems; Neural Marketplaces see OTAs fade. Travel companies should build adaptable AI infrastructures and focus on agility to succeed in this evolving landscape.

2 min

Corporate travel’s growing pains signal a tech-driven future

📅 May 22, 2025, a survey of 200 corporate travel managers across the U.S. and Canada shows growing dissatisfaction with traditional TMCs. 41% report inconsistent service; 36% cite poor tech functionality. 28% consider switching due to high costs (89%) and booking friction (57%). 66% of meetings occur outside managed programs, with 80% reporting poor integration. Travel managers seek AI-powered tools, with Direct Travel’s Avenir platform offering solutions. Steve Singh acquired Direct Travel in April 2024.

1 min

U.S. hotel performance shows uneven recovery in April 2025

📈 May 2025, the U.S. hotel industry experiences mixed results. Occupancy fell by 1.9% to 63.9%, yet ADR rose 1.8% to $161.28, with RevPAR slightly down by 0.1% to $103.11. San Francisco/San Mateo excelled, with occupancy up 14% to 69.6%, ADR up 20.5% to $227.44, and RevPAR up 37.4% to $158.36. New York's occupancy slightly increased to 84.8%. Detroit lagged, with a 2.3% drop to 57.4%.

1 min

Booking.com faces 25% commission cut in Switzerland

💸 Switzerland's price watchdog, on May 22, 2025, mandated Booking.com to cut hotel commission fees by nearly 25% under national pricing laws. This decision, applicable for three years once enacted, comes amidst a broader European trend for greater OTA pricing transparency. Booking.com, planning an appeal, has three months to comply. The commission rates remain unchanged during the appeal. Swiss law already forbids OTAs from enforcing price parity clauses, aligning with recent European Court of Justice support for hotel price flexibility.

2 min

Travel AI is moving beyond assistants

🗺 May 22, 2025, AI is revolutionizing travel planning. Google, OpenAI, Microsoft, and Expedia are shifting to autonomous AI agents, impacting OTAs and suppliers. Google’s Gemini and Expedia’s tools highlight AI’s role in travel decisions. These agents negotiate, book, and personalize plans by considering context like schedules and preferences. Travel suppliers and OTAs must adapt as AI agents handle end-to-end bookings, focusing on agent-to-agent negotiations for personalized travel experiences.

1 min

The travel industry’s cybersecurity reckoning

🛀 May 22, 2025: Cyber threats in the travel industry are escalating. Booking.com reports a 500% to 900% increase in phishing attacks. AI fraud is rising; two-thirds of UK adults can't spot AI-generated rental images. Third-party integrations, like social media and payment gateways, increase vulnerabilities. Human error, such as accessing systems via spoofed URLs, is a major issue. Education and training are crucial for defense. Cybersecurity is now a business imperative.

2 min

How values shape green tourism choices among Chinese millennials

🌍 May 22, 2025, The Hong Kong Polytechnic University researchers analyzed Chinese millennials' pro-environmental behavior in tourism. Findings highlight that while this demographic values environmental awareness, effective sustainable tourism strategies must integrate cultural and personal values, including pleasure and practicality. Collectivism and long-term orientation enhance pro-environmental behavior, whereas individualism and power distance reduce it. Recommendations for destination marketers include promoting communal and hedonic values and involving both parents and children in sustainability education.

2 min

Perplexity enters the travel game

🗺️ May 21, 2025, Perplexity, a promising generative AI platform, unveils a travel-focused search experience launched in March 2025, offering curated destination content, trending destinations, and inspiration cards. The interface can suggest hotels with reviews and practical details. The move aligns with Perplexity's goal to evolve agentic AI travel assistants for real-time trip management. Monetization began in 2024 through Sponsored Questions, providing a unique ad model compared to competitors like ChatGPT.

2 min

Hotels.com’s new AI chatbot falls short of expectations

🛠 May 21, 2025, Expedia Group launched an AI-powered chatbot in the Hotels.com app to boost brand performance. While the redesigned app and smart filters increased conversions by 35%, the chatbot struggles with accuracy and lacks key functionality like flight booking and accurate location recommendations. Listings have correct pricing, and users can save hotels to trips, but flights and activities need manual entry. The chatbot suggests restaurants and attractions but lacks booking integrations.

2 min

Google’s search revolution

💻 May 21, 2025, Google launched "AI Mode" at its developer conference, now available in the U.S. with Gemini 2.5 AI model integration. This aims to replicate expert conversations in search, impacting web traffic by reducing site visits. 1.5 billion users access AI overviews, causing a 30% drop in click-through rates. Future features include live video search and smart glasses. Google introduces a $250/month "Ultra" AI plan with 30TB storage amid competition from AI rivals.

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