AI Agents Threaten OTA Dominance, Shifting Power to Hotels.

AI agents are empowering hotels to bypass OTAs and reclaim direct bookings, igniting a new battle for distribution.

September 9, 2025

AI Agents Threaten OTA Dominance, Shifting Power to Hotels.
A fundamental shift may be on the horizon for the hotel industry, as emerging artificial intelligence agents show the potential to unravel the long-standing and often tense relationship between hoteliers and online travel agencies (OTAs). For years, platforms like Booking.com and Expedia have dominated the digital travel marketplace, leveraging their vast reach to connect travelers with accommodations. However, their commission-based model, which can extract significant fees from hotels for each booking, has been a persistent pain point for property owners. Now, some industry leaders and technology experts see a clear path for autonomous AI agents to empower hotels, reduce their reliance on these powerful intermediaries, and foster a new era of direct bookings. These intelligent systems, capable of understanding complex user requests and executing multi-step tasks, could soon act as personal travel concierges for consumers, fundamentally altering how trips are planned and purchased.
The core of the potential disruption lies in the very nature of advanced AI agents. Unlike simple chatbots that operate within the confines of a single website, these more sophisticated agents are envisioned as autonomous entities that can navigate the entire internet on a user's behalf.[1][2][3] A traveler could simply state their preferences—"find me a boutique hotel in Paris near the Marais for the first week of October, with a budget of $400 per night and good reviews for cleanliness"—and the AI agent would then autonomously search, compare, and even book the best option.[1][2] This process bypasses the need for a human to manually sift through OTA listings. Instead, the AI could interact directly with a hotel's own booking system, provided it is accessible and machine-readable.[4][5] This capability threatens the foundational business model of OTAs, which is built on aggregating consumer demand and acting as a gatekeeper between guests and hotels.[6][7] If a consumer's personal AI agent can perform the search and booking functions more efficiently and personally, the value proposition of the OTA as a one-stop-shop aggregator diminishes significantly.[8]
For hotels, the primary allure of this technological shift is the prospect of reclaiming control over their distribution channels and improving profitability by driving more direct bookings. By cutting out the intermediary, hotels can avoid commission fees that often range from 15% to 25% or more. This saved revenue can be reinvested into the property, used to offer more competitive rates, or simply translate to a healthier bottom line. AI tools are already being implemented to facilitate this transition. AI-powered chatbots on hotel websites can provide 24/7 assistance, instantly answering frequently asked questions, providing real-time rate quotes, and guiding users seamlessly to the direct booking engine.[9][10] Some hotels using these tools have already reported significant increases in direct bookings and reductions in incoming calls.[11] Furthermore, AI can enhance the personalization of the guest experience from the very first interaction, using data to offer tailored recommendations, upsells, and packages that are far more specific than the generic options often presented on OTA platforms.[12][13]
However, the transition to an AI-driven, direct-booking future is not without significant challenges and considerations. A primary obstacle for many hotels, particularly smaller independent properties, is the technological investment and expertise required.[14] To be visible to and usable by AI agents, hotels must have modern, robust digital infrastructures, including well-structured data and open APIs (Application Programming Interfaces) that allow for seamless communication between the agent and the hotel's reservation system.[4][5] Many hotel websites and legacy systems are outdated and not optimized for this kind of machine-to-machine interaction.[15] There is a tangible risk that if hotels do not adapt, AI agents may default to the most easily machine-readable sources of information and inventory, which are currently the OTAs themselves.[4] Moreover, the hotel industry has historically been slow to adopt new technologies.[16] This inertia could create a window of opportunity for OTAs to innovate and integrate AI into their own platforms, potentially strengthening their market position rather than ceding ground. Indeed, major players like Expedia and Booking.com are already developing their own AI-powered travel planning tools, aiming to become the preferred platform for both human users and their AI agents.[17][18][19]
Ultimately, the rise of AI agents represents a pivotal moment for the travel and hospitality sectors. While the vision of AI completely disintermediating OTAs is compelling for many hoteliers, the reality may be more nuanced.[17] The future could see a hybrid landscape where AI agents become the primary interface for travel planning, but they may still interact with OTAs for their aggregated data and standardized booking protocols, at least in the short term.[20] For hotels to truly capitalize on this technological wave, they must prioritize the modernization of their digital presence, focusing on data quality, system integration, and creating a seamless, personalized online experience.[15][16] The coming years will reveal whether AI agents become the great equalizer that allows hotels to reclaim their customer relationships or simply a new, more sophisticated battlefield where the fight for bookings continues between hotels and the deeply entrenched online travel agencies. The one certainty is that the AI revolution is no longer a distant concept; it is an active force reshaping the very foundations of travel distribution.

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