Hilton’s Chief Information Officer, Michael Leidinger, asserted that the rise of AI technologies like ChatGPT is posing a significant challenge to online travel agencies (OTAs). Speaking on Tuesday at the Destination AI conference in Washington, D.C., he explained how chatbots and large language models (LLMs) are disrupting the traditional advantage OTAs held by aggregating travel options for consumers.
Shifting Consumer Dynamics
Leidinger highlighted that AI assistants are enabling travellers to create tailored itineraries by simply entering their preferences into the system, eliminating the need for intermediary platforms like OTAs. This technological shift is seen as a direct threat to the OTAs’ market dominance, which has largely relied on bringing together diverse travel services in a user-friendly manner.
Potential Benefits for Hotels
Leidinger noted that although AI agents will also likely charge commission fees, similar to OTAs, the change could lead to more direct bookings through Hilton’s own channels, such as its website and app. This scenario presents an opportunity for hotels to capture a larger share of the booking revenues.
Leidinger’s comments reinforce the belief that the integration of LLMs and agentic AI technologies could fundamentally alter the landscape of online travel shopping, benefiting hotels by reducing their dependency on third-party booking platforms.
Reporting based on coverage first published by skift.com.