Google's AI May Shift Billions in Travel Distribution as Direct Bookings Challenge OTA Commissions
🗺 Expedia spends 56% of its revenue on marketing, while Booking.com allocates 31%. Both compete in Google's auction for visibility. Google's AI could shift dynamics by directly booking based on real-time comparisons, transferring the power of choice to Google. This could reduce OTA commissions, as hotels might receive more direct bookings. However, the financial demand cost could shift from OTAs to Google, altering travel distribution's multi-billion dollar flow and questioning OTA's 15-25% charges. ♻️
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