Hotels Embrace AI Integration to Boost Direct Bookings

The hospitality industry is witnessing a technological shift as hotels push to integrate live availability and pricing data into AI search platforms like ChatGPT. This move is aimed at increasing direct bookings and reducing reliance on online travel agencies (OTAs).

The Rise of AI in Hotel Bookings

Hotels are increasingly leveraging AI platforms such as ChatGPT, Gemini, and Perplexity to enhance their booking processes. Traditionally, these platforms have been used for vacation research, providing hotel descriptions and links. However, with the recent launch of “ChatGPT apps” by OpenAI, experts predict that AI search platforms will soon offer real-time pricing and availability, potentially transforming booking behavior and patterns in the accommodation sector.

A New Era for Direct Bookings

DirectBooker, a travel industry startup, is at the forefront of this shift. The company is already collaborating with property management systems like Eviivo and booking engines such as Mirai. According to Sanjay Vakil, CEO of DirectBooker, the goal is to bypass OTAs and feed live hotel data directly to AI search platforms, thus enabling a seamless booking experience for users.

Vakil believes that the chat interface for travel will surpass traditional search experiences, offering a new “front door” for travel bookings. Other software providers, including The Hotels Network and Apaleo, are also developing similar integrations to meet the growing consumer demand.

Reducing Search Fatigue

One of the key advantages of integrating AI into hotel bookings is the potential to reduce search fatigue. Gwenael Merlin, EVP of strategic solutions at Eviivo, highlights that travelers typically view an average of 141 pages of travel content before making a booking. AI platforms like ChatGPT can streamline this process by providing more tailored responses, thereby improving the quality of the search experience.

Supplier Demand and Industry Response

The accommodation sector supports any innovation that drives direct bookings, as it helps avoid the high commissions charged by OTAs. Thomas Ferrante, general manager of Gilpin Hotel & Lake House in the U.K., notes a recent increase in visitor traffic from ChatGPT referrals. Ferrante emphasizes the importance of integrating AI platforms to ensure hotels remain competitive.

In the short-term rental sector, companies like Casago are also exploring AI integrations to ensure their properties are visible and bookable in real-time. David Angotti, Casago’s chief digital officer, mentions that they are working with channel partners to connect their data and pricing infrastructure with generative platforms like ChatGPT.

Momentum and Caution

The launch of OpenAI’s ChatGPT app has generated significant industry interest. Juanjo Rodriguez, founder of The Hotels Network, compares it to the launch of Apple’s iPhone App Store in 2008, noting its potential to open a discovery space for hotels. The Hotels Network is capitalizing on this momentum with a product called Connect AI, designed to bridge the gap between hotels and AI-powered search platforms.

Despite the excitement, some industry observers urge caution. Liutauras Vaitkevicius, a technology consultant, advises hotels to ensure their information is up to date and relevant. He warns that many hotels still rely on outdated technologies that may not integrate well with AI platforms.

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