Duff on Hospitality Law

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.