Google Moves Travel Ads to AI Mode, Bookings Could Follow

Google says it has been testing new ad formats in AI Mode, its conversational search experience, where brands can appear in a way that “fits naturally into the conversation.” 

The most concrete example Google shared is for shopping: AI Mode gives organic recommendations, and then Google is testing a placement that adds sponsored options from sellers that carry those products, clearly marked as “Sponsored.”

Google says it is running similar tests outside retail, including travel, which is a meaningful signal because travel decisions are complex, high-value, and often influenced by what users see while comparing options.

How AI Mode changes the travel marketing playbook

Traditional travel search has been built around keywords and links, such as “hotel in Paris,” “cheap flights,” “best resorts,” and so on. With AI Mode,: a traveler can ask for ideas, add constraints, and quickly narrow the shortlist through follow-up questions. That structure creates new “high-intent moments” inside the conversation—exactly when a sponsored placement is most valuable.

If the tests expand, travel advertisers may need to think more about whether their brand appears in the AI’s comparison set when the user is ready to choose.

What Google is building under the hood

Google is not only changing ad layouts. It is also trying to standardize how AI systems connect to businesses so that the path from discovery to purchase becomes smoother. Google’s Universal Commerce Protocol (UCP), introduced in January 2026, is positioned as an open standard that helps businesses connect with AI agents across steps like data exchange and payments.

Google has also said UCP will enable checkout experiences in AI Mode and in the Gemini app for eligible US retailers, using saved payment methods and shipping information. Even though these examples are currently retail-forward, they show Google’s direction: AI experiences that do not just recommend, but can support secure purchase action.

“Direct Offers” and what it could look like for travel

Google has also introduced a monetization feature called Direct Offers in AI Mode. The concept is simple: when a user is close to buying, a business can present a tailored offer to help close the sale, and Google says it plans to expand these offers beyond price to value, such as loyalty benefits and bundles.

Travel was not the main example Google used, but the logic fits the industry well: airlines and hotels routinely use perks, bundles, and loyalty value to shift demand, fill unsold inventory, or encourage upgrades. If Direct Offers expands into travel, it could become a new way to surface targeted value during the decision moment.

The latest competitive pressure: ChatGPT ads and travel brands joining early

This shift is not happening in isolation. OpenAI has launched an ads pilot inside ChatGPT, with ads intended to be clearly labeled and tied to what users are asking.

In travel, Marriott has publicly discussed participating, describing a flow where users search in plain language, compare options with photos and reviews, refine the shortlist, and then move toward a booking. This suggests that travel distribution leaders expect these AI surfaces to become commercially important.

Photo by Adarsh Chauhan on Unsplash