Innovation

📱 In September 2025, Rakuten Travel launched a booking feature on Rakuten AI, its conversational agent, extending its capabilities beyond hotel recommendations. Available on its smartphone site and app, the tool enables natural-language searches and booking completion in one interface. Logged-in members benefit from discounts and Rakuten Points. The update aims to streamline the booking process, boosting conversions and retention. Rakuten, with over 70 businesses and 2 billion members globally, continues to enhance AI personalization.

✈️ 82% of bookings via NDC Direct Connect with Accelya surpass the industry average, signaling a shift from legacy systems. myRiva, founded in 2021 and backed by former leaders from eBay, American Express, Expedia, Microsoft, and BCD, highlights enhanced fare transparency and reduced manual steps. Accelya, serving 200 airlines, processes over 30 billion offers daily and settles over $100 billion yearly, accounting for more than 50% of global NDC volumes.

📶 Transavia France partners with Kolet to offer free two-day eSIM data (1GB) on arrival in over 190 destinations. Starting May 2026, this initiative aims to simplify connectivity for international travelers without swapping SIM cards. Subsequent data top-ups are available via the Kolet app, purchasable with Flying Blue Miles. This collaboration addresses travel stress linked to connectivity, with 90% of air passengers experiencing anxiety. Kolet, founded in 2024, extends its B2B2C strategy with this partnership.

📦 Uber announced in-app hotel bookings powered by Expedia on April 29, 2026, offering 700,000 U.S. properties. Uber One members get 20% discounts on over 10,000 hotels and 10% back in credits. By June, Uber rides will be in the Expedia app. Dara Khosrowshahi framed this as part of Uber's "app for everything" strategy. Expedia gains traffic from Uber’s 150-million-user app at no acquisition cost, while Booking.com shifts focus to AI.

💻 Between 2024 and 2025, U.S. travelers using traditional search engines fell from 51% to 36%, while AI platform usage more than doubled. In 2025, OTAs captured 63.4% of bookings from independents, with some hotels relying on them for 80% of bookings. AI favors hotels with a strong digital presence and consistent reviews. As AI discovery grows, revenue managers need to adjust strategies to mitigate rising OTA costs and focus on direct demand.

📈 OpenAI's ChatGPT will stop in-platform bookings, promoting direct hotel website traffic. By 2026, hotels need Generative Engine Optimization (GEO) to stay competitive. Strategies include semantic content modeling, schema markup, and enhancing authority signals. Effective content must be clear, concise, and easy for AI to interpret. This shift transforms AI into a discovery channel from a booking competitor, offering hotels new opportunities to attract high-intent travelers and increase direct bookings.

🏨 The average hotel profit margin ranges from 10% to 30%, influenced by type, location, and management strategies. Operating costs like labor have risen by 22.1% since 2019, despite a 7.4% decrease in hours worked. Direct bookings reduce costs by 15% to 26%. Sustainable practices can cut operating costs by 5% to 10%. Luxury hotels achieve 10% to 15% margins, while budget hotels maintain 5% to 10% margins. Total global hospitality is expected to grow to $7.47 trillion by 2030.