The signals behind hotel AI recommendations

Cloudbeds reveals why branded hotels dominate AI results—and what independent properties must do to stay visible in a world beyond Google

As travelers increasingly rely on AI-powered search engines like ChatGPT, Gemini, and Perplexity to discover hotels, the hospitality industry is entering a new era of digital visibility challenges. Cloudbeds, a leading hospitality software platform, has published a new report, “The Signals Behind Hotel AI Recommendations”, shedding light on how hotels are ranked and surfaced in these generative AI search environments. Drawing comparisons to the early days of SEO, the study highlights how branded properties, strong guest reviews, and wide digital footprints dominate AI recommendations—and what independent hotels must do to remain competitive.

Key takeaways

AI search is the new SEO

• Cloudbeds likens today's AI search visibility challenge to early SEO: unpredictable, evolving, and algorithmically opaque.
• Even OpenAI researchers don’t fully understand why LLMs choose certain hotel results—it's a "black box" similar to early search engine behavior.

Branded hotels dominate AI results

• 2 out of 3 hotel recommendations by AI are branded or part of a major group.
• OTAs remain dominant: Over 55% of sources cited in AI-generated results come from OTAs, especially those partnered with OpenAI (Tripadvisor, Expedia, Booking.com).

Digital footprint matters

• Hotels featured in AI search consistently had excellent guest reviews and high volumes of feedback.
• A wide online presence correlates strongly with AI visibility:
  • 98% were mentioned on YouTube
  • 97% on travel blogs
  • 95% on Reddit

How hotels can boost AI visibility

• Build a strategic OTA mix, including niche/regional OTAs.
• Keep websites updated, detailed, and written in conversational language.
• Focus on review management and reputation.
• Share authentic brand stories and local content across platforms like Instagram, YouTube, and Reddit.
• Embrace “Generative Engine Optimization” (GEO), similar in spirit to SEO but tailored for AI engines.

Download the report at Cloudbeds