Hotels regain leverage in the new AI booking era

How richer supplier content, real-time availability, and direct rates could shift control away from OTAs

Generative and agentic artificial intelligence (AI) is poised to change how hotels are discovered, booked, and serviced — potentially altering the balance between suppliers and online travel agencies (OTAs).

Industry leaders at The Phocuswright Conference in San Diego argued that AI will create new booking entry points that allow hotels to connect more directly with travelers, reducing intermediaries’ dominance. Conversational interfaces like ChatGPT now centralize research, questions, and recommendations in a single flow, which could replace the fragmented experience of browsing dozens of websites before making a decision.

While OTAs remain strong and are already integrating AI systems, suppliers have a growing opportunity to offer richer content, real-time availability, and direct value in ways aggregators have not historically matched.

Key takeaways

• AI creates new booking entry points: Generative and agentic AI could change the “front door” of hotel booking, allowing travelers to start and finish the journey within a single conversational interface instead of relying on comparison websites.
• Supplier advantage becomes possible: For the first time in two decades, hotels may regain some control over distribution by offering richer content, instant availability, and additional rate options that AI engines prefer over thin intermediary data.
• Reduced dependence on OTAs: AI-driven systems could help hotels connect directly with guests, potentially lowering distribution costs and improving conversion without the need for multiple third-party platforms.
• A better customer research experience: Travelers historically visited dozens of websites to compare hotels and answer questions; conversational AI now brings research, clarification, and booking into one unified flow.
• OTAs still maintain structural power: Despite new opportunities for suppliers, large aggregators remain difficult to dislodge and are already integrating AI to defend their position.
• Content quality matters more than ever: AI engines favor deep, accurate, supplier-generated information rather than thin intermediary listings, giving hotels an incentive to improve descriptions, availability feeds, and inventory accuracy.

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