Hotel distribution will get more complex

Tech giants like Apple and Amazon will use generative AI to analyze personal data on smartphones, offering more personalized travel recommendations than competitors

Hotel companies are evaluating how generative AI will affect them, but it's still early in the process. "There's been a lot of hype," said Jess Petitt, SVP of commercial strategy at Hilton. "Right now, generative AI is generating very few hotel bookings, but in five years, its impact will be significant."

Key takeaways

• Some experts envision a future in which online travel agencies and hotel companies won’t be able to compete with what tech players know about customers, given that your phone may know more about you than they do.
• Online travel agencies will leverage their large teams of engineers and early investments in AI, and while it may take time to exhaust their business model, this technology poses a significant threat to OTAs;
• Travelers could benefit from generative AI's understanding of their past behavior and inferred preferences - information suppliers like Marriott and OTAs like Expedia may not have the same level of access.

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