Duff on Hospitality Law

Good Sunday morning from Seattle (actually, about 180 miles south of Seattle at one of Marriott’s new Post Card Cabins in Glennwood, Washington) . . . Our weekly Online Travel Update for the week ending Friday, October 10, 2025, is below. This week’s OTU includes recent product updates from both Expedia Group (Hotels.com) and Booking Holdings (Booking.com) as well as several perspectives on the major “app” announcement that came out of last week’s OpenAI Development Conference. Enjoy.

• • Hotels.com Introduces New “Immediate” Loyalty Program Feature. Expedia Group’s Hotels.com has introduced a new loyalty feature (Save Your Way) that allows members of Expedia Group’s loyalty program, One Key, to use loyalty program discounts immediately when booking on Hotels.com or redeem them later for a booking on Hotels.com, Expedia or VRBO. Hotels.com claims that the feature is a first of its kind. According to Expedia, early results suggest that the new feature is proving most popular among business travelers who elect to use the discount immediately. Here’s my immediate reaction . . . This is simply rate discounting, and for many suppliers, unauthorized rate discounting. Bigger picture, will this new discount appear on search and meta search site results? If yes, how do suppliers handle the resulting parity fall out? Finally, how are competing intermediaries likely to react to this new feature? Time to check those contracts everyone.

• • Both Expedia and Booking.com Introduce New AI Powered Features. Both Expedia and Booking.com introduced last week a suite of new AI features for both travelers and the platforms’ supplier partners. Among its many announced new features, Booking.com has introduced Smart Messenger and Auto Reply to “improve” communications between suppliers and their guests.  Expedia has announced Lodging Sponsored Listings API, a new advertising tool for Expedia’s B2B partners.   

• • OpenAI Partners with Expedia and Booking.com to Launch ChatGPT Apps. The big announcement in online travel last week came out of OpenAI’s annual development conference on Monday. ChatGPT has become an app “platform” open to third party developers. As part of the announcement, Expedia and Booking.com both announced new ChatGPT apps (with a TripAdvisor app soon to follow) that allow users of the AI platform to browse, select and ultimately book accommodations on the ChatGPT platform. (As we have noted in prior Updates, the inability to actually book travel without leaving a chosen AI platform has been noted in several studies as a source of frustration for AI users generally) To access the OTAs’ content, users must first type in the name of the app (e.g., “Expedia” or “Booking.com”) into their prompt or, and this where things get really interesting, the platform will suggest an app that the platform believes is most responsive to users’ prompt if no app is specified. Connectivity between ChatGPT and the OTAs is provided via Model Context Protocol (MCP). The offerings are currently available to ChatGPT users (Free, Go, Plus and Pro plans) outside the EU. Industry reactions to the announcement have been mixed – from wild hysteria to shoulder shrugs. From my perspective, the need to summon the app in advance is definitely a drawback (and likely means that the announcement is not the game changer that many initially thought it might be). The scary factor here is the fact that ChatGPT will choose between the competing apps in the absence of a specific summons. How does ChatGPT choose between the competing apps? Will ChatGPT eventually monetize this choice (e.g., whomever pays ChatGPT the most)? Are the two (soon to be three) apps the only sources of content to respond to users’ prompts? Our friends at Seattle’s own Geekwire offer an interesting perspective on the announcement and the potentially perilous position that Expedia now finds itself.

• • Perplexity Launches Comet with Expedia. Also last week, AI platform Perplexity (as I’ve noted, one of the most interesting AI platforms for the travel industry) announced the launch of a new AI browser and AI assistant, Comet. Expedia Group joined the launch as one of the browser’s initial launch partners and is offering a first-of-its-kind incentive (Silver status on Expedia’s One Key loyalty program) to travelers to download the new browser. Users of the new browser and assistant will also be able to search, select and book travel without leaving the Perplexity platform (which is consistent with Perplexity’s earlier announced partnerships with TripAdvisor and Selfbook).

• • Questioning Airbnb’s Sincere Interest in Hotels? Recently posted job openings suggest that you might want to think otherwise. For those of you have been part of my recent AI and distribution presentations, Airbnb is one of the platforms I’m watching most closely in the months ahead. 

Have a great week everyone.

Good Sunday morning from Seattle . . . Our weekly Online Travel Update for the week ending Friday, October 3, 2025, is below. Artificial intelligence again generated most of this past week’s headlines (many of which coming out of the recent Destination AI Forum in Washington, D.C.), but social media also made a strong showing. Finally, Seattle’s own AI conference (which wasn’t focused on travel) also featured an interesting announcement. Enjoy.

• • ChatGPT Announces Agentic Commerce. This past week, Seattle (and Madrona Venture Group, where Steve Singh serves as a Managing Director) hosted the IA Summit 2025, an “exclusive gathering of AI founders, researchers and leaders.” OpenAI’s chief strategy officer, Jason Kwon, spoke on a variety of topics, including the AI platform’s plans for e-commerce and its recent integration with payment platform Stripe. Below are a few highlights from the recent announcement. It’s not a stretch to think that this new tool will soon be made available for travel, underscoring the need for hoteliers to formulate their AI strategy NOW. While recent studies have underscored travelers’ frustration with AI platforms’ inability to support bookings on their platforms without the need to switch applications, last week’s announcement shows that at least one prominent AI platform may be a lot closer to solving that problem.

"More than 700 million people turn to ChatGPT each week for help with everyday tasks, including finding products they love. Starting today, we’re taking the first steps toward ChatGPT helping people buy them too—beginning with Instant Checkout, powered by the Agentic Commerce Protocol, built with Stripe."

"U.S. ChatGPT Plus, Pro, and Free users can now buy directly from U.S. Etsy sellers right in chat, with over a million Shopify merchants, like Glossier, SKIMS, Spanx and Vuori, coming soon. Today, Instant Checkout supports single-item purchases. Next, we’ll add multi-item carts and expand merchants and regions."

• • Agoda Launches New Social Media Program – Agoda Ambassadors. Think that we’ve seen the height of influencers’ influence over the industry? Think again. Agoda announced this past week a new program (Agoda Ambassadors) that pays an influencer a commission whenever a traveler books on the Agoda website using a unique promotion code given the influencer. Other features of the new program include new sponsored stays and activities for influencers and marketing campaigns featuring the influencers. Time to re-examine those Agoda contracts?
  • How Are Hoteliers Using AI Today? Two recent studies and speakers at last week’s Destination AI Forum seek to provide some preliminary answers. See the stories below.
  • Airbnb’s Loyalty Play. All signs point to the short term rental (and soon hotel) booking platform’s introduction of a new loyalty program. What this program will ultimately look like is unknown, but industry analysts believe it will look much more like a membership or subscription program (e.g., Amazon’s Prime program) versus a traditional (“transactional”) program (e.g., Marriott’s Bonvoy program).
  • Capital One Travel Hires Industry Veteran. Early last month, Capital One Travel brought on Sarah Kaplan Moore to lead the credit card company’s travel program as the Head of Capital One Travel. Moore joins Capital One after roles with Agoda’s Rocket Travel, Expedia and Vivid Seats. What Moore’s addition might mean for the company’s existing travel partnerships, including its long-standing supplier (and investor) relationship with Hopper is unclear (Moore has indicated that she’s open to all forms of partnerships). Add to this uncertainty the effect of Capital One’s recent acquisition of Discover Financial Services and its 300 million global cardholders.
  • Tik Tok Announces Additional Travel Ad Products. Only weeks after its newly announced partnership with Booking.com, Tik Tok has introduced a new advertising solution targeting the travel industry – Travel Ads by Smart+. The Travel Ads program connects users of the social media platform to hotel, destination, flight and cruise promotions while exploring travel related content on the platform. Travel industry members, including Accor, Melia and Expedia, have already participated in program tests. Advertisers seeking to use the program can choose among three options – single videos, catalog videos or catalog carousels.

Have a great week.

Good Sunday morning from Seattle . . . With a full week of wind and rain in the forecast, fall has definitely arrived in the Pacific Northwest.

Our Online Travel Update for the week ending Friday, September 26, 2025, is below. With Skift’s annual Skift Global Forum now behind us, things definitely slowed this past week in the online travel world. This week’s Update features another heavy does of AI updates, including Sabre’s attempt to garner its own AI headline. Enjoy.

• • Stratechery Features Wide Ranging Interview with Glenn Fogel. The online newsletter Stratechery featured this past week a wide-ranging interview with Booking Holdings’ CEO, Glenn Fogel. Topics include Glenn’s personal medical challenges back in high school, the origination of Booking.com (who ever heard of Active Hotels), Booking’s rapidly evolving relationship with Google and of course, the Connected Trip and AI’s role in making the Connected Trip a reality. I must admit that I knew very little about Glenn or his background until reading this informative interview.

• • Sabre Announces Agentic AI Ready APIs. Sabre announced this past week its upcoming launch of agentic AI ready APIs, powered in part by a new proprietary Model Context Protocol (MCP) server. Powering all of this of course is Sabre’s extensive data set of travel transaction data, hotel content, etc., which Sabre claims is the “richest base of travel knowledge anywhere.” Are hoteliers ready to pay GDS transaction fees on AI generated bookings? How soon will the leading connectivity service providers introduce their own (cost-effective) connectivity options? Are hoteliers better served by connecting directly with AI platforms? We will all have to wait and see.

• • Measuring the Effect of Social Media and Generative AI. Another week and another study documenting the increasingly disruptive effect of generative AI and social media in travel. For those of you who have been part of my recent AI and distribution presentations, the study underscores several of my previous points – social media and generative AI affect travelers much higher in the traditional sales funnel (social media is now the primary source of inspiration for American travelers), generative AI’s role in travel inspiration is growing quickly (particularly among baby boomers) and trust remains a tangible concern.

• • Skift’s Take – “The End of Travel’s Big Four Stranglehold.” Coming out of last week’s Skift Global Forum, Skift Founder, Rafat Ali, shared his thoughts on emerging cracks in the largest players’ (Booking Holdings, Expedia, Trip.com and Airbnb) control and influence over the online travel landscape. According to Ali, “the potential for disruption is more tangible than it’s been in years.” If Ali’s assessment is correct, the optimist in me sees both challenges (the shift to platform loyalty) and opportunities (the increasing importance of direct traffic and direct customer relationships) for suppliers in this new online reality. What an incredible time to be part of online travel.

Have a great week everyone.

Good Saturday morning from Seattle . . . Our Online Travel Update (OTU) for the week ending Friday, September 19, 2025, is below. For those of you asking why the list of stories has grown so long the past few Updates (and what happened to the bespoke, curated short list of must reads that you’ve come to expect), the short answer is artificial intelligence. While I do my best not to get caught up in the spectacle that AI has become, it would appear that we are entering an AI arms race as platforms and intermediaries of all varieties (including now, apparently, Airbnb) try to outdo the other. I’d also add that the onset of fall (and with it, the seemingly endless stream of industry events (this past week, the Skift Global Forum), investor conferences, etc.) contributes to the growing list of stories. Read with caution and enjoy.

• • Booking.com Expands Business Travel Offerings. Booking.com’s business platform, Booking.com for Business, announced this past week a new partnership with event planning platform, Bizly. Users of the business platform can now access Bizly’s global inventory of hotels, conference centers, private dining rooms and co-working spaces for meeting and event bookings. Bizly now joins other business travel service provides like Expensify, International SOS and Traxo in the Booking.com for Business marketplace.

• • Chinese Regulators Reviewing Trip.com’s Auto Price-Matching Tools. Chinese online distributor, Trip.com, has been “summoned” by Chinese market regulators over the distributor’s alleged “unreasonable” operating practices. At issue are Trip.com’s automatic price adjustment tools that adjust hoteliers’ rates (or apply promotional discounts) whenever the distributor discovers competing platforms offering lower prices. Chinese regulators claim that these practices violate China’s E-Commerce Law and Interim Regulations on Anti-Unfair Competition on the Internet. According to regulators, the summons was issued to ensure that Trip.com follows through on promised corrective changes.

• • Airbnb to Get Serious About Hotels. Although Airbnb had previously announced changes to better position itself to re-enter the hotel market, comments by Airbnb CEO Brian Chesky this past Tuesday at the Skift Global Forum made clear the short term rental booking platform’s objectives. According to Chesky, “[we] are now getting serious about hotels.” In addition to the previously announced fee structure change (15.5% commission), Airbnb’s announced plans include a dedicated hotel interface. The new boutique and independent hotel offerings will be piloted in a few major cities, including New York, though timing of the pilots was not announced. The addition of hotels is one of several initiatives that Airbnb recently announced to drive faster growth.

• • The Growing (Disruptive) Influence of Social Media. And dare I say, influencers?!? Argh. Research recently commissioned by iSeatz reveals that the traditional booking path is being turned on its head – particularly for younger travelers. The study surveyed 1000 American travelers over the age of 18.  A few highlights . . .
    • 43% of respondents said that they were inspired by a loved one. No surprise. Younger generations, however, are many times more inspired by social media (52% of Gen Z respondents and 46% of millennials identified social media as their primary source for travel inspiration).
    • Younger generations are often more likely to use social media over traditional search for conducting travel research (45% of Gen Z respondents prefer social media and 27% go to social media first).
    • 40% of respondents said that influencers had a “significant impact” on where they travel and how they book (the number only grows larger with younger generations – 62% of Gen Z respondents said that influencers “impact” their travel decisions).

An interesting point, particularly for travel suppliers, is the technological infrastructure gap that prohibits users of social media to book directly within their chosen platforms. A majority of Gen Z respondents and millennials said they would book directly from a social media platform if the process was secure and seamless. Recent studies suggest that AI platforms suffer from this same technological challenge. The travel brand (supplier, OTA or other, yet unnamed industry outsider) that best (not necessarily first) solves this problem may be the ultimate winner.

Have a great week everyone.

Good Sunday morning from Seattle . . . Our Online Travel Update for the week ending Friday, September 12, 2025, is below. This week’s Update features a heavy does of AI-related stories, including reports on the major OTAs’ ongoing AI efforts. Enjoy.

• • Major Platforms Endorse EU Online Ratings Code of Conduct.  This past week, several major online travel platforms (TripAdvisor, Expedia Group and Booking.com) endorsed the EU’s ‘Code of Conduct for Online Ratings and Reviews for Tourism Accommodation.’  The voluntary Code is open to suppliers, industry associations, online platforms and consumer associations, and those that endorse the code commit to ensure genuine online reviews and ratings. 

• • Researchers Release Report on Effect of AI Agents on Traditional Customer Loyalty.  Researchers at Florida Atlanta University have released an interesting report on the anticipated effects of AI-enabled agents on customer loyalty in the hospitality and travel industry.  As AI agents become increasingly skilled (and trusted) at making consumers’ decisions, travel industry members will have to re-think traditional loyalty strategies (e.g., loyalty to a particular algorithm or ecosystem vs. loyalty to a brand).   A copy of the report is available through the link below.

• • Anything and Everything Is Now Possible at Airbnb.  I’m paraphrasing of course, but Airbnb co-founder and CEO, Brian Chesky, is quite bullish on the possibilities that AI and AI native applications might mean for the short-term rental platform and its future businesses.  In remarks at an investor conference last week, Chesky noted that mature businesses that Airbnb had previously dismissed were now back on the table because of the new interface possibilities associated with AI.  Although Chesky did not go into detail about what these businesses might be, commentators suggest that they likely include hotels (which Airbnb announced in August of this year) and may also include flights, experiences and, according to Chesky, additional services for rental hosts.   

• • Social Media and AI Playing an Increasingly Important Role in Online Booking Platforms’ Marketing Efforts.  Yes, online booking platforms continue to increase their marketing investments.  Nothing new there.  But the story here is where those investments are now being made.  Yes, traditional search remains important (at least for now, but likely less so), but investments in social media (think Booking.com’s recently announced partnership with TikTok) and artificial intelligence (think the OTAs’ almost weekly announcements of new partnerships with the major AI platforms) are increasingly the focus.  According to Expedia CEO, Ariane Gorin, for Expedia, traffic generated through its investments in AI is still small, but it is growing rapidly and converts at a much higher rate.

• • How Do Travelers Really Use AI Platforms?  This past week I sat in on Propellic’s presentation of results from its recent behavioral study of how travelers use Google’s AI Mode when searching for travel.  For me, the study revealed some key findings, including the (likely short term) advantage that suppliers may have over third party online platforms.  I’d encourage everyone to take the time to read the summary report that is available on Propellic’s website (or watch the associated webinar).   

Have a great week everyone. 

Good Sunday morning from Seattle . . . Our Online Travel Update for the week ending Friday, September 5, 2025, is below. The federal court’s recent decision in the much-publicized Google anti-trust case captured most of the week’s headlines in an otherwise quiet week in online travel. Enjoy.

• • Artificial Intelligence Will Pose New Challenges to Suppliers’ Systems. For those distribution executives with too much time on their hands (after all, who doesn’t have endless amounts of time with all of the other anticipated AI driven changes in distribution), you now need to consider the systematic challenges associated with travelers’ increasing use of AI tools, most notably agentic AI. As the story below details, the number of travelers’ “looks” to actual bookings has increased steadily over the past twenty plus years and are poised to explode with travelers’ use of AI-enabled agents to search and book travel. This unprecedented increase in looks will tax suppliers’ existing systems (and systems’ processes like caching), resulting in the need for more technology that comes with a hefty price. Will suppliers soon need to impose fees for searches of their content? Maybe.
  • WiT Releases Documentary on Online Travel in Asia. Over the past several weeks, WiT has released chapters of a new documentary on the history of online travel in Asia – “Online Travel in Asia – The Untold Story.” The entire documentary is now available (and is included in the story below). For all of you distribution nerds, this is essential viewing.
  • Effect of Google Decision on Online Travel Is Unclear. Reactions from the online travel world to last week’s U.S. federal court decision in the long-running Google anti-trust case have been mixed. Unlike ongoing investigations in the EU that have focused on Google’s search and display practices (among others), the U.S. decision says nothing about search or display. Nor did the decision force Google’s divestiture of Chrome, as some speculated would happen. Instead, the decision forces Google to share certain search results with its competitors and limits Google’s ability to enter into exclusive distribution and licensing deals. So, what does this mean for online travel – if anything? It is unclear at this point. Some notable industry analysts believe that the decision is good news for online travel agencies that can now enter agreements with Apple and other device manufacturers to pre-install the online travel agencies’ mobile applications on phones and devices. Apple and other manufacturers could also re-introduce their own search or recommendation tools that rely heavily on online travel agencies. Others industry members question whether online travel agencies have the resources to enter into such deals with Apple or other manufacturers.
  • Google’s New Flight Deals Tool Promises Better Search Results. Google has launched a new AI-powered tool on Google Flights. Using natural language search queries, travelers in the U.S., Canada and India can now obtain AI-powered “contextual” search results tailored to their specific needs – financial and otherwise. Anticipated future updates will include filters that allow travelers to remove undesirable fare classes, itineraries, etc., from their custom search results.

Have a great week.

Good Monday afternoon from Seattle . . . For those of you enjoying a long holiday weekend, Happy Labor Day. Our weekly Online Travel Update for the week ending Friday, August 29, 2025, is below. With the summer doldrums coming to an end, activity across the online industry has picked up starting with Booking.com’s newly announced partnership with TikTok, which dominated industry headlines (and our many of our clients’ attention) this past week. Enjoy.

• • Booking.com’s Growing Interest in Social Media. For the past several quarters now, Booking Holdings, CEO, Glenn Fogel, has made reference to Booking’s increasing interest and investments in social media and AI. While many (this author included) focused largely on Fogel’s statements on AI, Booking.com’s newly announced partnership with TikTok provides some of the strongest evidence yet of Booking’s efforts to leverage social media and to transition social media from a historically marketing focused channel (a source of traveler inspiration) into a booking channel. So, what does this newly announced partnership mean for hotels (and particularly, hoteliers’ direct booking efforts)? I think it is too early to tell. Many questions remain about both social media and artificial intelligence and travelers’ (across all ages and demographics) general willingness to use (and trust) either platform. For me, one thing is clear. Booking.com’s latest announcement (which is only the latest in a growing list of newly announced partnerships between leading distributors and their new AI and social media partners) has brought back memories (not all good) of OTAs’ early dominance of online search and the many bookings that resulted.

• • Acrimony Between Hoteliers and Booking.com? Not sure I agree with this one, at least for the reasons noted in the attached article.

• • Ryanair and Booking Holdings Bury the Hatchet – For Now. For years now, our Update has followed the acrimonious (and sometimes amusing) relationship between Ryanair and distributors. With this newest announced deal, Ryanair has done a complete about face in its view of (and willingness to work with) the online platforms. According to reports, the newly announced deal features some unique deal terms (at least when compared to hoteliers’ typical terms and conditions) – passengers who book through Booking.com will have access to their Ryanair accounts and Ryanair will receive passengers’ actual contact information (not fictious email addresses) through which Ryanair is able to communicate directly with passengers.

• • Google Continues to Add AI Capabilities. In its latest round of AI-related announcements, Google has announced that AI Mode (which is currently available to users in the U.S., UK and India) is expanding to over 180 new countries and territories. Google Ultra AI subscribers will also soon be able to leverage “agentic capabilities” in AI Mode to search and make restaurant selections and reservations and other services bookings.

• • Agoda Launches “Ask Me Anything”(AMA) Property Bot. Leveraging ChatGPT and the information it is able to access and use, Agoda has introduced a new AI chatbot on its website and mobile application that provides travelers detailed information about potential properties. The chatbot now answers 30,000 questions a day about Agoda’s listed properties. Users of the chatbot can now avoid messaging properties directly with questions regarding their stay. Hoteliers take note – this latest functionality seeks to make available to Agoda users detailed property information that hoteliers may have never intended to make available through a third party platform. Content differentiation may now be more difficult than ever.

Have a great week everyone. 

Good Sunday morning from Seattle . . . Our Online Travel Update for the week ending Friday, August 8, 2025, is below. For several weeks now, we’ve all seen and read the many headlines regarding American Airlines planned use of AI for rate setting. This week’s Update features several stories on the controversy, including a report into the art and science of rate setting. Enjoy.

• • Expedia Reports Strong Second Quarter.  Buoyed by its B2B, advertising and international lines of business, Expedia this past week reported strong second quarter performance and increased its guidance on gross bookings and revenue for the full 2025 calendar year.  Like other hospitality companies that reported this past week on weakening U.S. demand, Expedia experienced some of the same slow down but managed to offset the weakness through its other businesses.  Of the three primary Expedia Group companies (Expedia, Hotels.com and VRBO), Expedia faired the best as the remaining two continue to experience platform transition challenges.  Expedia continues to work with AI platforms – namely OpenAI and Google – to drive traffic to its websites, which according to Expedia CEO, Ariane Gorin, converts “well.”

• • Southwest Tickets Now Available on Booking Holdings’ Websites.  Southwest Airlines announced last week that its tickets are now available on Agoda, Booking.com and Priceline (among other BH websites).  This latest announcement further evidences Southwest’s complete transition from being an exclusively direct channel retailer to embracing a wide variety of third party intermediaries.

• • Booking.com Launches Co-Branded Credit Card in U.S.  After months of rumors and speculation, Booking.com finally revealed its first U.S. co-branded credit card, the Booking.com Genius Rewards Visa Signature Credit Card.  Cardholders will receive travel credits (each worth $1.00) in varying amounts for purchases – up to 6% for hotels and short term rentals booked on the Booking.com app.  Cardholders will also be immediately enrolled in the third (highest) tier of Booking.com’s Genius loyalty program.  Hoteliers must keep a close eye on the card and any future cardholder promotions to ensure the card doesn’t undermine pricing on the Booking.com platforms.

Our next Update will be for the week ending Friday, August 29. 

Good Sunday evening from Seattle . . . Our Online Travel Update for the week ending Friday, August 1, 2025, is below. It was another slow week in the online travel world with Booking Holdings again capturing most of the industry’s headlines. Enjoy.

• • Booking Holdings Reports Strong Second Quarter. This past week Booking Holdings issued its second quarter earnings release (for those interested, a copy of the earnings call transcript is linked below). Booking Holdings’ strong market position in countries outside the United States (as compared to its primary competitors, Expedia and Airbnb) once again proved to be its saving grace as the U.S. leisure market continued to struggle. Highlights from the recent release for me include the following:
    • Booking.com’s loyalty program, Genuis, showed meaningful growth. Booking.com plans to soon add additional travel products (beyond accommodations) to its awards program.
    • In an effort to head off the effects of Google’s AI summaries on traditional search engine marketing, Booking Holdings is diversifying its marketing investments, including a 25% (YOY) increase is spending on social media platforms. According to Booking Holdings CEO, Glenn Fogel, these investments will allow Booking Holdings to engage with customers earlier at the inspiration stage of the travel funnel.
    • With regard to AI and its growing importance within Bookings Holdings, Fogel provided updates on efforts at Priceline, Agoda, Booking.com, Kayak and OpenTable to grow their use of AI organically. Fogel also confirmed previously reported collaborations with OpenAI (including OpenAI’s recently announced ChatGPT Agent), Microsoft and Amazon as a means of expanding Booking Holdings’ sources of future travelers.
  • Trust Remains a Concern for Most Users of AI. Booking Holdings released last week The Global AI Sentiment Report, which shares important insights gained by Bookings Holdings from over 37,000 consumers in 33 markets. While the Report details consumers’ overwhelming excitement about the new technology (and growing interest in using the technology in the future), concerns among consumers remain. I encourage everyone to take 30 minutes to review the Report.
  • Yet Another Class Action Targeting Booking.com. This past week saw news of yet another potential class action against Booking.com over its pricing (e.g., rate parity) practices. This latest claim is being brought by the UK’s Bed and Breakfast Association on behalf of thousands of UK accommodation providers. The same concerns I expressed earlier over similar previously announced class actions (particularly for those providers with negotiated portfolio-wide contracts with Booking.com) apply equally to this newly announced effort.

Have a great week everyone.

With summer in full swing, it is no surprise that this past week was another slow week in the online travel industry.  Our recommendation?  Enjoy this week’s Update with a drink in hand by your pool or other favorite body of water.  Enjoy:

• • OpenAI Launches Agent Mode.  On Thursday this past week, OpenAI officially released new functionality (ChatGPT Agent) that can search and book hotels, activities and flights on behalf of its ChatGPT chatbot users.  Pro, Plus and Team users of ChatGPT have or will soon have access to the new agent with Enterprise and Educator users to follow.  According to ChatGPT, the agent can create custom travel plans (using users’ provided destinations and preferences) and itineraries complete with maps and hotel and activities bookings.   Over time, as the agent learns of users’ preferences, the agent will factor those preference into its proposed plans and itineraries.  A demo released as part of the launch shows a user using the new agent to plan and book a trip for an upcoming wedding.  In the demo, the agent uses Booking.com to review hotels’ availability and rates and then book. 
    
    
  • New Intermediary Seeks to Help Hoteliers Leverage AI Platforms.  DirectBooker, a startup backed former TripAdvisor CEO, Steve Kaufer, and ex-Google Travel head, Richard Holden, is building a B2B platform to feed rich (differentiated) hotel content (ARI) to AI platforms directly and allow hoteliers to bypass the emerging content stranglehold held by OTAs.  What’s the business model you might ask?  Early indications from DirectBooker are that they are looking at traditional CPC or CPA models.  Additional details about the startup’s plans are available on the DirectBooker website.