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BusinessFEATURE

Hotels Adapt as AI Models Transform Travel Searches

Hospitality industry faces challenges in visibility as AI-driven search tools gain traction.

MD

Mateo Dela Cruz

May 24, 20266 min read203 views
Hotels Adapt as AI Models Transform Travel Searches
Hotel guests engaging with AI tools for travel planning.
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With AI increasingly integrated into travel planning, hotels are under pressure to ensure they remain visible to potential guests. Services like ChatGPT and Layla.ai enable users to ask detailed questions about hotel features, transforming traditional search methods.

AI's Impact on the Hospitality Sector

We’re in complete upheaval: last year 35 percent of French people used artificial intelligence to find a hotel, a cafe or a restaurant.

Nicolas Marette, Founder of Custplace
  • 37% of travelers use AI-enabled travel sites for trip planning.
  • 25% of hospitality firms report AI strategies yielding returns.

A Boston Consulting Group study indicates 37% of travelers utilize AI tools for trip planning. In response, many hotel operators are developing strategies to enhance their digital presence and adapt to AI search algorithms.

Johanna Benesty from BCG emphasizes that hotels must differentiate their SEO strategies for traditional search engines from those needed for AI platforms. This shift is critical as AI models vary significantly in functionality.

Meeting Emerging Consumer Demands

Accor, a major player in the hotel industry, is striving to refine its visibility within AI frameworks. Nicolas Maynard, the company's AI and data science chief, noted the drastic reduction in visible search results when using AI, which complicates the competition for top rankings.

It’s a big change: with Google a search gives you 50 results… while if you ask ChatGPT it will give you five.

Nicolas Maynard, AI and Data Science Chief at Accor

The challenge now lies in understanding vague customer requests. As Maynard pointed out, hotels must adapt their systems to accommodate the nuances of natural language.

The Future of Customer Interaction

Olivier Cohn, director at Best Western France, highlighted the importance of addressing detailed client inquiries. He believes that hotels which can provide thorough responses will stand out in the increasingly competitive landscape.

What will make the difference is our ability to answer client questions more thoroughly.

Olivier Cohn, Director at Best Western France

To meet this demand, some hotels are turning to AI chatbots for support, allowing staff to focus on more complex interactions. However, the battle for visibility is not solely in the hands of the hotels; comprehensive, trustworthy information is essential for algorithms to favor their listings.

According to BCG, the evolving landscape of AI distribution could lead to new fees for hotels seeking prominence in digital recommendations. This shift mirrors the commission model of online travel agencies, indicating a significant change in how hotels market themselves in the digital age.