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AI’s Role in Travel: Booking.com and Expedia’s Growing Influence Raises Concerns – Image Credit Unsplash+
Major travel platforms like Booking.com and Expedia are embedding themselves into AI-driven systems, potentially becoming dominant gatekeepers that control the travel booking process. If unregulated, this could result in independent hotels being marginalized, forced to pay commissions to reach their guests.
AI’s Growing Influence in Travel
The integration of artificial intelligence (AI) into the travel industry is accelerating, with major players like Booking.com and Expedia taking a leading role. These companies are embedding themselves into AI platforms, significantly impacting how travelers search, discover, and book accommodations. This development raises concerns about the potential formation of an AI duopoly, where a few companies control the digital travel landscape.
The Role of the Digital Markets Act
The European Union’s Digital Markets Act (DMA) aims to regulate the power of big tech companies, ensuring fair competition in digital markets. While the DMA targets major corporations such as Google, Apple, Amazon, Meta, and Microsoft, it does not yet extend to stand-alone AI assistants like ChatGPT, Gemini, or Perplexity. These AI tools are increasingly acting as gatekeepers, influencing travel decisions and bookings.
Potential Impact on Independent Hotels
Without regulatory oversight, AI platforms could dominate the travel funnel, marginalizing independent hotels. Large online travel agencies (OTAs) like Booking.com and Expedia could secure preferential placement within AI systems, forcing hotels to pay commissions to access guests. This scenario mirrors past challenges faced by hotels during the OTA era, where control over guest interactions was largely in the hands of intermediaries.
AI’s Control Over the Travel Journey
AI assistants are not merely answering questions; they are controlling the entire travel journey, from inspiration to transaction. They determine which hotels appear in search results, the order of listings, and the pricing. This level of control creates a powerful distribution monopoly, currently being consolidated by a few key players.
Regulatory Oversight and Policy Recommendations
To address these challenges, there is a call to extend DMA protections to AI assistants acting as distribution gateways. Proposed measures include mandating non-discriminatory access for suppliers, requiring transparent ranking and labeling of paid placements, and limiting cross-context data use. These steps aim to ensure fair competition and prevent monopolistic practices.
The Future of Travel Distribution
The trajectory of AI in travel suggests a future where AI assistants shape how travelers discover, compare, and book accommodations. With the proliferation of AI agents across various platforms, there is a risk of hotels becoming permanent renters in a controlled ecosystem. To prevent this, policymakers and industry leaders must act to maintain competitive markets and protect the interests of independent hotels.
A Call to Action
There is a need for collective action to influence policy and reclaim control over the guest journey. By extending regulatory frameworks like the DMA to cover AI assistants, the travel industry can ensure fair competition and innovation that benefits all stakeholders. The time to act is now, as the rapid evolution of AI in travel presents both challenges and opportunities for the future.
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