Duff on Hospitality Law

Good Sunday evening from Seattle . . . Our weekly Online Travel Update for the week ending Friday, February 20, 2026, is below. Last week we featured stories on the reported AI activities of Marriott and Hyatt, and this week we feature updates on both Wyndham and IHG. This week’s Update also offers a few perspectives on Booking Holdings’ recent quarterly earnings release (a copy of the Booking Holdings’ earnings call transcript is also linked below). Enjoy.

• • Wyndham Partners with Google, Claude and OpenAI. What are major hotel suppliers doing to counter the seemingly endless AI announcements by the major OTA platforms? Wyndham CEO, Geoff Ballotti shared information on Wyndham’s plans in Wyndham’s recent earnings release call. According to Ballotti, Wyndham has partnered with Google (serving as one of Google initial integration AI mode partners), Claude (providing Claude direct access to Wyndham’s rates and inventory) and OpenAI (working to also provide ChatGPT direct access to Wyndham’s rates and inventory). So far, the costs associated with these efforts are minimal as both Claude and ChatGPT (which refer users back to the Wyndham website to complete the booking) are foregoing transaction costs – at least for now.
  • IHG Updates Its Hotel Content. According to IHG CEO, Elie Maalouf, IHG may not be as externally focused as its competitors (at least not yet) when it comes to transitioning for AI. In an earnings call last week, Maalouf, detailed the company’s plans to adopt an entirely new AI-compatible hotel content platform to better attract and respond to AI systems. IHG is also working with Google to develop AI trip planning capabilities that will allow for natural language searches on the IHG websites and apps. These AI specific updates are part of a larger technology overhaul by IHG that is currently underway and features the rollout of a new customer relationship management platform, guest reservation system and property management system – all of which are cloud based.
  • Booking Holdings Reports Strong 4Q and Full Year Results. A few takeaways from last week’s Booking Holdings’ earnings release and call:

    • Demand. Demand growth (9% YOY growth in 4Q) was driven by growth in the U.S. (10-12% YOY growth in 4Q).

    • Artificial Intelligence. Management was far more focused on the savings achieved via AI integration in its customer support processes (roughly 10% per booking) versus new customer acquisition. Management remains bullish on the important role that OTAs like Booking.com will serve in the post AI world as, according to Booking, AI platforms will ultimately serve largely search and advertising functions (and not as an actual merchant).

    • The Importance of Independent Hoteliers. Booking Holdings CEO, Glenn Fogel, spoke at length about the importance of Booking’s relationships with independent hotels and the value that Booking represents to this hotel segment. According to Fogel, the 10 largest hotel chains account for only a “low double digit percentage” of Booking.com’s total room bookings. Interesting timing for Booking to raise this point as AI and now Airbnb appear to present viable threats to Booking’s dominance of this hotel segment.

    • The Increasing Role of Connected Transactions. Connected transactions grew in the high 20% range in 2025. Connected transactions now represent a low double digit percentage of all Booking.com transactions. Note that Booking’s view of “connected transactions” is slightly different than the traditional “packages” definition in that Booking.com defines a connected transaction as one where one traveler books multiple travel verticals over a 1-3 day period (and not necessarily a simultaneous purchase of multiple verticals like most traditional packages).

    • Marketing. Booking invested heavily in marketing during 4Q (total marketing increased 22% YOY in 4Q) and throughout 2025 (total marketing increased 12%). During 2025, Booking Holdings invested a total of $8.1 billion dollars in marketing (let that number sink in), which represents 4.4% of Booking Holdings’ total gross booking value during the same period. Note that social media investments increased 13% during 4Q.

  • Booking.com Defends Contracting Practices. Ever wonder how Booking.com views the many investigations and class action claims brought against it over its allegedly anti-competitive contracting practices? Booking.com recently posted a response on its website.

  • Google Testing Ad Formats for AI Mode. Anyone surprised by this one? Last week, we included a story about ChatGPT’s announced commencement of ad testing on the lowest tiers of its AI subscriptions. Not to be outdone, Google has announced plans to begin testing new ad formats for retailers that offer products and services most responsive to a user’s natural language query. According to Google, similar tests are also being run in the travel industry. What these AI ads ultimately look like and just how personalized they may become – think loyalty – remains to be seen.

Have a great week everyone.