According to the company’s leading tech officer, artificial intelligence assistants may disrupt the influence online travel agencies have over hotel reservations, opening up new prospects for major hotel groups.
Travel Aggregators’ Role Tested by AI Chatbots
During his address at the Destination AI conference in Washington, D.C. on Tuesday, Michael Leidinger, Hilton’s Senior Vice President and Chief Information Officer, emphasized that the emergence and rapid spread of AI-enabled solutions like ChatGPT and other large language models (LLMs) now pose a “real threat” to online travel agencies (OTAs). He highlighted that, in the past, OTAs secured their advantage by bringing together options from a wide-ranging, fragmented sector, but AI assistants are starting to replicate and deliver those comprehensive choices directly in response to travelers’ needs.
Leidinger remarked in a live interview at the event, “It really, for the first time, puts the OTAs under real threat, because in many ways they were providing those aggregated views in this highly fragmented environment and now, the LLMs have kind of, they’re providing that.”
He pointed out that previous efforts by hotel brands—including extensive marketing campaigns—had failed to shift consumer habits away from using OTAs for hotel searches and reservations. In contrast, this new generation of AI, which can interpret many types of preferences to craft custom travel plans, seems to be succeeding where traditional advertising had not.
Potential Shift to Direct Bookings Benefits Hoteliers
Leidinger foresees that as AI agents begin to assume the function once reserved for OTAs, hospitality companies like Hilton could see direct reservations through their websites and apps increase. He acknowledged that even if AI tools charge commissions for completing bookings, the shift could still be advantageous: Hilton could gain from more bookings made independently from third-party giants.
With agentic AI—technology that can not just answer questions but also book trips—Leidinger believes the established order across the travel sector could be fundamentally changed. This would allow hotels greater direct contact with guests and enable better management of the guest journey.
While recognizing that AI systems may themselves become new intermediaries, Leidinger stated Hilton is positioning itself to benefit as competition evolves. He began, “Much more of an opportunity for us to d…,” hinting at the company’s intent to embrace and leverage these changes as they arise.
Online Travel Agencies Confront Technology-Driven Challenges
The conference’s discussion highlights how travel industry stakeholders are acknowledging the transformative impact that artificial intelligence could have on how travelers locate and book hotels, flights, and other accommodation. Rather than relying on OTAs’ traditional aggregator structure, AI-enabled agents offer personalized search capabilities and curated recommendations, potentially shifting business away from third-party booking sites.
As these advanced technologies become more prevalent, travel operators are re-assessing their technology frameworks and customer interaction models. Hotel organizations like Hilton are preparing to adapt, keeping a close eye on the rapid evolution of AI within the travel ecosystem.
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