Google Develops AI Tool Enabling Direct Hotel Bookings, Challenging Booking.com’s $7.3 Billion Ad Spend Strategy
📖 In 2023, Booking.com spent $7.3 billion on Google ads. Google is developing a tool allowing travelers to book hotels directly via AI Mode, bypassing OTAs like Booking. Collaborations include Marriott, Expedia, and Wyndham. OTAs spent $17.8 billion on marketing in 2024, competing for visibility on Google. Google's new system shifts transactions closer to its platform, reducing OTAs' roles. While hotels may see hope, Google retains control, questioning OTAs' future value.
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