Booking.com and Expedia redefine travel with AI

This week marks a pivotal moment for travel distribution as online travel agencies embrace generative AI to redefine how guests plan and book stays. From Booking.com’s bold move into ChatGPT to Expedia’s AI-powered travel browser, these developments signal a seismic shift in digital travel experiences and major implications for hotel visibility, conversion, and guest engagement.

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Booking.com partners with ChatGPT to enhance trip planning

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Booking.com’s new partnership with ChatGPT positions the OTA at the forefront of conversational travel planning. As one of the first companies to launch an app within OpenAI’s platform, alongside major consumer brands like Spotify and Zillow—Booking.com is moving swiftly to embed itself where millions of users are already exploring ideas and making decisions.

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A new booking experience

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Within ChatGPT, travelers can now research destinations, compare accommodations, and explore amenities, all through natural, conversational prompts. Once users identify a preferred property, the app seamlessly directs them to Booking.com to complete their reservation. This creates an integrated planning journey that removes friction between inspiration and conversion.

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Impact on pricing and visibility

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For hotels and short-term rental operators, this integration could reshape the battle for visibility. Properties optimized on Booking.com may now benefit from being surfaced directly in ChatGPT-powered conversations, potentially becoming the first results guests see when dreaming about their next trip. This makes accurate descriptions, compelling photos, and dynamic pricing strategies even more critical to capturing AI-driven demand.

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Competitive differentiation

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Unlike startups entering the AI space, Booking.com wields massive behavioral data and strong connectivity with global accommodations. This allows it to personalize search and pricing recommendations far more effectively than new entrants. The move not only strengthens Booking.com’s distribution power but also sets a new expectation for how travelers will interact with booking platforms.

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Industry implications

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Generative AI isn’t just enhancing search, it’s redefining the role of OTAs in the customer journey. As chat-based discovery replaces traditional keyword search, hotels must rethink distribution strategy and SEO alignment across platforms like Booking.com. The winners will be those who adapt early, ensuring their listings remain visible and competitive within AI-driven ecosystems.

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Online travel agencies brace for AI evolution

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Booking Holdings and other OTAs are preparing for an industry-wide transformation driven by AI. Despite concerns that generative models could disrupt established platforms, analysts remain confident that OTAs’ deep integration with accommodations, payment systems, and behavioral data will protect them from rapid displacement.

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For hoteliers, this resilience means continued reliance on OTAs as major revenue drivers, but also growing pressure to adapt to algorithmic personalization and automated guest interactions. The more data OTAs feed into AI models, the smarter and more competitive their pricing and merchandising systems will become.

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Expedia launches AI-driven travel planning tool

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Expedia’s latest innovation, Comet, is an AI-powered browser developed with Perplexity to merge conversational search with travel planning. It offers users itinerary recommendations, loyalty perks, and destination comparisons all in one place. Initially desktop-based, Comet reflects Expedia’s ambition to become not just a booking engine, but an end-to-end travel intelligence platform.

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For hotels, this means new avenues for exposure, and new challenges. AI-driven tools like Comet prioritize relevance and personalization, meaning properties with detailed content, strong reviews, and competitive pricing will stand out. Expedia’s commitment to integrating AI across its services also hints at future opportunities for hotels to leverage predictive demand data and smarter advertising placements.

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Otamiser helps hotels across Europe, the U.S., and Asia improve OTA rankings and revenue through data-driven pricing and local market insights.