AI In Industry

AI In Industry

Travel & Hospitality

Nov 13, 2025

Invisible Overnight: How AI Is Erasing Travel Brands That Don’t Integrate

Jordan Miles

By: Jordan Miles

Thursday, November 13, 2025

Nov 13, 2025

8 min read

Regulatory inputs transform into a clear, compliant advice card.
Regulatory inputs transform into a clear, compliant advice card.
Regulatory inputs transform into a clear, compliant advice card.

Credit: Booking.com

Key Takeaways

The integration of travel and hospitality partners like Expedia, Trip.com, and Kayak directly into AI models is shifting the customer journey from search engines to conversational interfaces.

  • With roughly 18 % of consumers already using ChatGPT or similar tools in their purchase journey, non-integrated brands risk disappearing from digital visibility altogether..

  • The largest threat is disintermediation, AI platforms are capturing the customer relationship from discovery to booking to loyalty.

  • Inaction is not passive; it’s an active loss of relevance in a market where AI-driven experiences are expected by consumers and rewarded by platforms.

  • The economic impact of AI in the travel and hospitality sector is projected at $1.48 trillion

“We built our entire marketing strategy around search engine visibility,” one hotel marketing director told PromptWire. “Now, we have to ask if our customers are even searching there anymore.”

For two decades, brand visibility meant SEO, ad spend, and online travel agencies (OTAs). But the new travel planner isn't typing into Google, it’s talking to ChatGPT, Expedia’s in-chat plugin, or Booking.com’s AI trip designer. The window where a brand could simply buy visibility is closing fast, forcing a strategic shift away from traditional search-based marketing.

Your Brand Is Disappearing Where Guests Now Plan Trips

A growing share of trip planning now begins inside conversational AI platforms, making the LLM the new middleman. 

For years, travel brands and hoteliers fought for attention on the first page of Google. But travelers no longer start their journey there. When a user types, “Plan a week in Kyoto under $2,000 with boutique hotels and day trips,” ChatGPT acts as researcher, planner, and booking agent, consulting integrated partners like Expedia and returning a full itinerary inside the same dialogue.

This profound change is far more than a simple User Experience (UX) shift; it represents a new commercial infrastructure. 

As Caroline Bremner, Head of Travel & Tourism Research at Euromonitor International, noted, “AI tools like this are set to redefine how consumers research, plan, and experience travel.” [1

Travel executives agree: 97.8% of them expect AI to impact their business within five years  [1]. That impact is not limited to airlines and OTAs; it cascades directly into hospitality, where AI now drives room pricing, guest service, and upselling. For example, Hilton is piloting conversational AI across its loyalty program, allowing members to request upgrades or late check-outs via chat. The result is a new kind of middleman, one that never shows ten traditional "blue links," but rather one single best option.

The Silent Revenue Leak: AI Sends Customers to Whoever Can Answer It

AI integration is not an optional technology upgrade; it is the new distribution infrastructure, and failing to integrate results in a compounding financial loss. 

When a user asks, “find a boutique hotel in Rome with a rooftop pool,” the assistant’s answer depends entirely on who is securely connected to its data ecosystem. Here is where the revenue is actively redirected away from non-integrated brands.

Invisible Listings

LLMs only recommend from structured, trusted, and accessible data sources. If your property isn’t part of that machine-readable dataset, you are invisible by default to the conversational user. Expedia’s 2024 AI-enabled integration with ChatGPT, for instance, drove millions of new booking leads directly from chat sessions [3]. According to Phocuswright, 62% of travelers are now “comfortable letting AI make recommendations” on where to stay or what to book [5], illustrating the consumer reliance on the AI for discovery.

Friction = Failure

When a user asks the LLM for availability and pricing, and your hotel or airline cannot return real-time data via a robust API, the model immediately routes the user to a competitor that can provide that instant confirmation. Expedia’s Q2 2024 earnings showed $25.8 billion in gross bookings, up 7% YoY, directly credited to “AI-driven discovery and engagement” [3]. The inability to serve real-time data translates directly into a lost booking opportunity.

Margin Shift

Every AI-based booking pays an affiliate or data-access fee, redirecting revenue away from direct-booking initiatives toward the AI platform or its distribution partners. Booking Holdings’ financials tell a similar story: AI and automation helped the company achieve a 17% YoY increase in total bookings, worth $37.2 billion [4]. 

As Rita Carton, a luxury travel consultant, states, "AI cuts response times in half and doubles conversion rates [6]. Clients are getting used to personalized chat experiences, they won’t go back to waiting for an email reply.” 

The lesson is blunt: in a trillion-dollar ecosystem, failing to integrate means failing to exist where high-intent demand now lives.

The Erosion of Brand Loyalty in an AI-Mediated Market

When AI assistants become the gatekeepers of the decision-making process, the traditional, emotional edge of brand loyalty weakens significantly.

In the old model, loyalty was nurtured through familiarity, points, and repeat stays. But a guest no longer searches “Hilton in Paris”, they ask, “Which 4-star hotel in Paris offers late checkouts and vegan breakfast?” The LLM ranks options based on structured data points, price, amenities, ratings, reviews, and sentiment [7], [8], not brand heritage.

This behavior explains why 65% of travelers prefer brands using AI personalization and 52% prefer AI-enabled booking platforms [7], [8]. AI tools already handle 50–70% of customer inquiries in travel and hospitality [7]. In this new dynamic, the assistant, not the brand, is now the source of trust for the consumer.

Algorithmic Loyalty

The new loyalty currency is integration quality and data cleanliness. If the LLM cannot read your content, cannot parse your most recent reviews, or cannot access your loyalty offers in real-time, it simply will not recommend you. VoyagePro, for instance, is actively working to surface its member-only perks and unique property descriptions through a dedicated, machine-readable API feed. This ensures that when a user asks for "best hotel for loyalty members," VoyagePro surfaces algorithmically as the most relevant and trusted option, protecting its guest relationship even within an AI-mediated environment.

The Hidden Cost of Inaction

The ultimate cost of ignoring the AI shift isn't measured in innovation budgets; it is measured in lost relevance and permanent exclusion from the new customer funnel. 

By sitting out the integration effort, travel and hospitality brands lose on four critical fronts:

  • Discovery: Without machine-readable data structures like structured text, your core property and offering details are invisible to the LLM's consumption engines.

  • Direct Revenue: Missed API integrations force users back toward OTAs, eroding profit margins that could have been secured through direct, AI-assisted bookings.

  • Data Ownership: AI platforms collect rich intent data (e.g., “travelers looking for 3-night stays in Kyoto with a focus on historical tours”), refining their models and capturing market intelligence while your proprietary analytics stagnate.

  • Agility: The LLM ecosystem evolves weekly, with new integration standards and data protocols emerging constantly. Waiting even a year risks permanent exclusion from the channels the competition is already dominating.

The Internal Disruption: Beyond Customer-Facing AI

AI isn’t only transforming how brands reach guests, it’s fundamentally reshaping how they operate, creating a new competitive gap in operational efficiency.

 From predictive maintenance and demand forecasting to automated concierge services, internal AI adoption is already cutting costs and redefining roles across the sector.

Predictive Maintenance and Staffing

Hotels like Marriott have tested generative AI for HR and staff training, while Hyatt uses predictive algorithms to optimize occupancy and staffing. These systems analyze booking patterns, weather forecasts, and local events to schedule staff and maintenance proactively, saving labor costs and improving guest satisfaction. VoyagePro is piloting a similar internal system that uses LLMs to triage maintenance requests and assign the correct specialized technician, cutting repair times by 30%.

The next competitive gap may not be who integrates externally, but who automates the fastest and most comprehensively internally, using clean, structured data as the foundation for both.

Warning Signs: Are You Already Falling Behind?

If you cannot confidently answer "Yes" to these operational questions, you are already ceding ground in the conversational economy. 

Ask your marketing and distribution teams these critical audit questions today:

  • When you query ChatGPT or Gemini for your destination, does your brand appear as a bookable option?

  • Is your property data formally structured using updated text structure for key elements (e.g., Hotel, PriceSpecification, FAQPage)?

  • Are your booking APIs standardized and accessible to major AI partners and distributors?

  • Have you dedicated resources to testing your brand’s visibility in conversational search?

  • Are your loyalty offers and detailed guest reviews included in specialized, dedicated AI-training data feeds?

Why This Matters: If You’re Not in the Answer, You’re Not in the Market

For travel and hospitality leaders, this isn’t just a technology story, it’s a survival story. The customer journey no longer starts in a search bar; it begins in a conversation. When travelers ask an AI assistant for recommendations, only brands with structured, machine-readable data and real-time integrations are surfaced. Everyone else disappears.

Visibility is no longer earned through keywords or ad spend, it’s determined by whether the AI can understand, trust, and transact with your brand. The model’s answer is the marketplace. There’s no scroll, no comparison, no second chance to be discovered later.

So what? If your brand isn’t integrated into the AI ecosystem, you’re already conceding visibility, revenue, and loyalty to competitors who are. The digital shelf has collapsed into a single intelligent response. Integration readiness, not marketing spend, now decides who gets the booking and who gets left behind.

In short: If you’re not in the answer, you’re not in the itinerary, and soon, not in the market.

The Conversation Has Already Moved

The travel industry’s new battleground isn’t who ranks first on Google, it’s who appears first in the AI’s recommendation. The revolution is already underway: trip planning has shifted from searching to speaking, from browsing to booking in one seamless interaction.

This transformation demands more than visibility, it requires presence inside the conversation itself. Brands that build for this new ecosystem will capture intent, trust, and loyalty at the moment they converge. Those that don’t will watch the dialogue, and their customers, move on without them.

As one hotel executive put it, “We built our strategy on being seen.” The new mandate is sharper: In an AI-driven world, it’s not about being seen, it’s about being said.

Sources

  1. C. Bremner, “Use of AI tools such as ChatGPT to plan travel set to boom,” Travel Daily News, 2024. https://www.traveldailynews.com/statistics-trends/euromonitor-international-use-of-ai-tools-such-as-chatgpt-to-plan-travel-set-to-boom/ 

  2. First Page Sage, “The Financial Impact of AI by Industry: 2025 Forecast,” 2025. https://firstpagesage.com/seo-blog/chatgpt-usage-statistics/ 

  3. Expedia Group, “Expedia Group Reports Second Quarter 2024 Results,” 2024. https://ir.expediagroup.com/news-releases/news-release-details/expedia-group-reports-second-quarter-2024-results

  4. Booking Holdings Inc., “Q4 Earnings and Results 2024,” Investor’s Business Daily, 2024. https://www.investors.com/news/technology/booking-stock-booking-holdings-q4-earnings-results-bkng-news-travel/ 

  5. Phocuswright, “Travel Technology Survey 2024: AI and Conversational Commerce in Travel,” Phocuswright Research, 2024. https://www.phocuswright.com/Travel-Research/Travel-Technology-Survey 

  6. R. Carton, “AI travel agents are taking off—and they’re changing how agencies win business,” Business Insider, 2025. https://www.businessinsider.com/ai-travel-agents-trip-planning-agency-business-growth-2025-8 

  7. Gitnux Research, “AI in the Global Travel Industry Statistics,” 2024. https://gitnux.org/ai-in-the-global-travel-industry-statistics/ 

  8. WiFi Talents, “AI in the Travel Industry: 2024 Statistics and Market Impact,” 2024.https://wifitalents.com/ai-in-the-global-travel-industry-statistics/ 

Share this article

Related Articles

Related Articles

Related Articles

Subscribe to PromptWire

Don't just follow the AI revolution—lead it. We cover everything that matters, from strategic shifts in search to the AI tools that actually deliver results. We distill the noise into pure signal and send actionable intelligence right to your inbox.

We don't spam, promised. Only two emails every month, you can

opt out anytime with just one click.

Copyright

© 2025

All Rights Reserved

Subscribe to PromptWire

Don't just follow the AI revolution—lead it. We cover everything that matters, from strategic shifts in search to the AI tools that actually deliver results. We distill the noise into pure signal and send actionable intelligence right to your inbox.

We don't spam, promised. Only two emails every month, you can

opt out anytime with just one click.

Copyright

© 2025

All Rights Reserved

Subscribe to PromptWire

Don't just follow the AI revolution—lead it. We cover everything that matters, from strategic shifts in search to the AI tools that actually deliver results. We distill the noise into pure signal and send actionable intelligence right to your inbox.

We don't spam, promised. Only two emails every month, you can

opt out anytime with just one click.

Copyright

© 2025

All Rights Reserved