Will Operator give hotels the edge or strengthen OTAs?
OpenAI’s latest tool, Operator, promises to reshape travel booking - can hotels leverage AI to reclaim direct control, or will OTAs continue to dominate?
Last year, ChatGPT introduced a new level of efficiency across industries, but its impact on the hotel sector has been relatively minor—until now. OpenAI’s latest product, Operator, presents a significant shift by enabling AI-powered travel bookings. The trial phase includes a collaboration with Priceline, allowing users to request and book trips seamlessly. While this innovation could empower hotels to regain direct control over bookings, there is also a risk that online travel agencies (OTAs) will continue to dominate, leveraging their existing partnerships and AI expertise.
Key takeaways
- Operator’s potential: OpenAI’s Operator could reshape travel booking by offering AI-powered searches and direct hotel bookings;
- Hotel vs. OTA battle: Hotels have an opportunity to reclaim control, but OTAs, with their deep pockets and established online dominance, may capitalize on AI advancements;
- Hilton’s perspective: CEO Chris Nassetta emphasized Hilton’s preference for direct customer relationships over reliance on OTAs, while acknowledging the role of AI in enhancing the guest experience;
- Digital presence matters: Hotels need to optimize their online content, encourage positive reviews, and enhance direct distribution strategies to compete effectively;
- The AI-powered future: Despite hopes of a reset, AI-driven search results may still favor those who invest the most money, making adaptability and strategic planning crucial for hotels.
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