AI is coming for hotel distribution — but not all at once

Why trust, economics, and execution will determine how fast AI reshapes bookings and commissions

A debate at Skift’s Megatrends event highlighted broad agreement that artificial intelligence will transform hotel distribution, while exposing meaningful disagreement over how quickly that transformation will play out. While AI is expected to increasingly mediate how travelers discover and book hotels, adoption will depend on consumer trust, economic incentives, and operational execution across the industry. For hoteliers, the discussion pointed to gradual but structural pressure on traditional OTA commission models, alongside emerging — yet uneven — opportunities to strengthen direct distribution. The takeaway was pragmatic rather than dramatic: AI will reshape hotel bookings, but change will arrive in phases, not overnight.

Key takeaways

• AI-driven discovery will steadily reshape demand: As AI tools become part of trip planning, traditional search rankings and OTA merchandising will lose influence, shifting how hotels are surfaced to travelers.
• Revenue risk matters more than visibility loss: The larger threat for distribution platforms — and indirectly for hotels — is not fewer clicks, but declining monetisation as AI changes who captures booking value.
• OTA commission models face gradual pressure: If OTAs are reduced to facilitation and payments rather than demand generation, the sustainability of 15–20% commissions will be increasingly questioned.
• Trust will determine adoption speed: Some travelers may adopt AI booking quickly after positive experiences, but the high cost and low frequency of travel purchases make trust fragile and slow to rebuild after failures.
• Direct booking potential may expand, but execution is hard: AI could enable hotels to present richer, more customized offers beyond rigid OTA fields, yet most independent hotels lack the time, skills, or systems to fully exploit this opportunity.
• Some intermediaries are losing relevance: Review-heavy platforms like Tripadvisor appear to be declining in influence, while unpopular practices such as resort fees are likely to persist.
• Execution will determine the winners: Hotels and intermediaries that invest early in technology, partnerships, and operational readiness will benefit first, while others will experience a slower, more uneven transition.

Source: Skift

Read also: The erosion of Booking.com

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