ChatGPT revolutionizes travel planning: OTA collaboration in focus!

ChatGPT revolutionizes travel planning: OTA collaboration in focus!

The introduction of ChatGPT as a travel planning platform marks a remarkable shift in digital sales in the tourism industry. The integration of travel apps such as Expedia and Booking.com allows users to query information about travel destinations, compare flights and book hotels directly in the chat. This development could radically change existing sales by making chat the new booking tool. But while travelers benefit from more convenience, experts fear hoteliers may lose control over their direct sales. HotelInside reports, that the new feature is based on OpenAI's Model Context Protocol (MCP) and is described by Ariane Gorin, the CEO of Expedia Group, as a "new era of travel planning".

Expedia's new ChatGPT app gives users access to real-time travel inventory, dynamic pricing and visual content. Key features include the ability to do conversational planning, where users can ask questions in natural language. They also receive tailored recommendations for hotels, flights and activities that they can book directly in the chat. This interactivity provides users with a multimodal experience, including text suggestions, accommodation images, and interactive maps. Medium highlights that the app is available to all users registered in ChatGPT outside the EU and appeals to a broad target group.

The challenges for hotels

The integration of large online travel agencies (OTAs) into ChatGPT has a significant impact on competition in the industry. As OTAs strengthen their market position, industry experts warn about the risks to direct sales for hotels. Commissions for third-party bookings range between 15 and 30 percent, highlighting the need for hotels to develop their own AI strategies and invest in smart systems. Independent hotels are challenged to compete in an increasingly AI-driven world.

Additionally, it emphasizes that AI search favors well-known brands and advertising budgets, which benefits the larger platforms. To remain visible in this market, it is crucial for hotels to optimize their own channels, use chatbots and implement dynamic booking technologies. Adapting to these new circumstances could be essential to survival in order not to fall behind larger providers.

Opportunities in a new era

Despite the challenges, integrating AI also offers new opportunities for hotel visibility in chat. Travel planning is increasingly shifting from traditional methods of discovery to a closed conversation format. This could lead to increased reliance on OTAs for hotel distribution, which could reduce direct website traffic and upsell opportunities.

However, it has also been observed that consumers, especially younger travelers, are increasingly open to the use of AI in travel planning. Vendors that successfully leverage structured data and AI are likely to be more powerful than those that rely on legacy systems. The rapidly changing landscape of tourism and travel marketing could not only require new strategies, but also encourage a fundamental rethinking of how suppliers and travelers interact.