Co-existence: the OTA-led defence against an AI takeover
It’s no secret that the AI revolution has arrived, and the online hotel distribution sector has already adapted to the first ripple effects.
But OpenAI’s Operator, launched earlier this year, revived concerns about the lifespan of long-standing industry players in the wake of new technologies.
The AI agent not only reads data, but can also interact with a browser.
This means in addition to generating travel recommendations and plans, Operator can make bookings, only asking users to take over for tasks that require login and payment details, or to solve CAPTCHAs.
Adding to the momentum, Perplexity recently partnered with fintech platform Selfbook and Tripadvisor to bring hotel bookings directly into its AI-powered ‘answer engine’ – another clear sign that agentic AI is on the rise.
Currently, Online Travel Agents (OTAs) are still the biggest drivers of hotel booking revenue, having withstood and adjusted to decades of technological advances – including mobile, a revolution that many thought would leave OTAs behind and instead has seen them use to further their competitive advantage.
Yet new tools like Operator and Perplexity raise questions.
Does the advent of AI agents signal the beginning of the end for third-party bookings, or are we simply entering a new phase in the evolution of online hotel distribution? And, how can other key industry players, particularly hotels, learn from the action OTAs have already taken?
Travellers still prefer a human touch
Hotels do not adopt shiny new technology just based on trends, Phung says; they adopt it when it has proven to solve a problem.
In terms of AI, he says hotels are seeking tools that enhance efficiency, reduce costs, and improve the guest experience.
“The industry sentiment is cautiously optimistic – hotels are open to AI but want to ensure it is secure, scalable, and easy to integrate without disrupting operations,” Phung says.
Whether or not hotels adopt up-and-coming tools, the strength of AI’s future grip on online hotel distribution will be determined by the extent to which guests are willing to abandon older technology and platforms to embrace the new.
And this is where OTAs have the advantage.
centric hotel model, with only 1 in 10 agreeing the technology should do it all.
OTAs have proven to be resilient and adaptable to decades of technological advances.
“Booking a hotel in 2002 and booking a hotel now, it’s not that different if you want to do it online,” “Nothing big really changed.”
Much of the enduring popularity of OTAs can be attributed to the simplicity of browsing and booking on their websites. And instead of a favourite hotel or brand, Catala says many travellers are instead loyal to a particular OTA.
But that does not mean accommodation providers can rely solely on OTAs to gain them new and repeat guests.
Evolve now to avoid to avoid future extinction
While AI agents like Operator could theoretically bypass OTAs by offering hyper-personalised booking experiences, Phung, like Puorto, does not see OTAs disappearing anytime soon.
Instead, he says, AI will likely strengthen OTAs in several ways.
“The future isn’t about OTAs disappearing – it’s about AI-powered travel experiences that blur the lines between direct and third-party bookings.”
But in order to be strengthened, not eaten, by AI, Catala says the technology needs to be embraced correctly by OTAs and revenue managers.
He warns those who only focus on the old status quo may disappear, while those who evolve and build more diverse expertise by experimenting with new technologies will stay competitive.
How revenue managers adapt to new technology will mean everything for their future.
But even in the age of AI, it is important to remember human connection goes a long way.
Adapted from www.siteminder.com
