Booking CFO Says AI Will Fuel OTAs, Not Kill Them

Speaking at a recent financial conference, Booking Holdings Chief Financial Officer Ewout Steenbergen said AI should strengthen OTAs rather than replace them. He pushed back on the idea that AI poses a threat to OTAs, arguing instead that it can accelerate industry growth.

AI will bring more travelers online

The debate over AI’s role in travel has intensified as tools like ChatGPT and Perplexity can already answer travel questions, suggest itineraries, and support bookings.

While some observers see these tools as a threat to traditional intermediaries, Steenbergen argued that they ultimately funnel more demand into online booking.

Steenbergen said AI has the potential to expand the total addressable market for OTAs by speeding up the long-term shift from offline to online travel booking. As planning tools become easier to use and more personalized, he expects more consumers to travel and rely on digital platforms to research, compare, and book trips.

Booking’s moves in AI development

Booking has already started embedding its services into AI environments. The company recently partnered with OpenAI, making Booking one of the first travel platforms accessible through the ChatGPT platform.

Expedia has taken a similar step, connecting its services to OpenAI as well.

As AI evolves, collaboration between large language models and travel platforms is already becoming part of the industry’s next phase. Check out our explainer on AI travel agents to learn more about the topic and future possibilities.

Photo by Beth Macdonald on Unsplash