The AI Revolution in Travel: How Booking Holdings and Tripadvisor Are Changing the Game

The AI Revolution in Travel: How Booking Holdings and Tripadvisor Are Changing the Game

The travel industry is undergoing a major transformation, with AI-powered booking experiences reshaping how travelers plan and book trips. Leading the charge are Booking Holdings and Tripadvisor, both making significant strides in AI-driven trip planning.

Booking Holdings’ AI Vision: The Future of Travel Planning

Booking Holdings—the parent company of Booking.com, Priceline, and Kayak—is fully embracing AI to redefine travel booking. CEO Glenn Fogle describes “agentic AI” as a game-changer that will soon handle every step of the travel process, from booking flights and accommodations to curating personalized experiences.

How AI Is Changing Booking Holdings’ Platforms

• AI Trip Planner: A smart assistant on Booking.com that curates entire trips based on traveler preferences.
• Priceline’s AI Assistant (Penny): Helps users book hotels, flights, and experiences with automated, real-time recommendations.
• Seamless AI Integration: The goal is to eliminate the need for manual searches—AI will analyze preferences, suggest options, and finalize bookings.

Record Growth Driven by AI

Booking Holdings’ 2024 revenue hit a record $23.7 billion, an 11% increase over the previous year. Growth in alternative accommodations and flights shows that travelers are responding well to AI-driven booking tools.

The big question remains—will AI completely replace traditional search-based booking? If Booking Holdings succeeds, the manual process of searching for flights and hotels may soon be obsolete.

Tripadvisor’s AI Strategy: A Partnership with Perplexity AI

Tripadvisor is also leveraging AI, but in a very different way. Instead of focusing on AI-powered assistants, it has partnered with Perplexity AI, a cutting-edge AI search engine designed to attract high-intent travelers who are actively looking to book.

Why This Matters for the Travel Industry

• Shift Away from Google: For years, travel platforms have depended on Google search traffic. Now, users are turning to AI platforms like Perplexity AI, ChatGPT, and Google Gemini for trip planning.
• Higher-Quality Leads: Tripadvisor CEO Matt Goldberg states that users coming from Perplexity AI show stronger booking intent compared to traditional search traffic.
• Expanding AI Integrations: Tripadvisor is bringing AI-driven search to experiences, restaurants, and more, making it easier for travelers to discover and book services.

Additionally, Tripadvisor is now collaborating with OpenAI’s Operator, joining Booking.com, Priceline, and other major travel brands to shape the future of AI-powered bookings.

What This Means for Property Managers & Travel Businesses

1. AI Is Reshaping Travel Planning

   • Automated assistants are replacing manual trip planning.
   • Businesses must optimize their listings for AI-driven platforms.

2. Search Behavior Is Changing

   • Google’s dominance in travel search is being challenged.
   • Travelers are relying on AI-driven recommendations and direct booking tools.

3. Direct Bookings & Visibility Are More Important Than Ever

   • Businesses that fail to adapt may lose traffic to AI-driven booking platforms.
   • Property managers must leverage AI to stay competitive in the evolving digital landscape.

For expert insights on how to optimize your listings, leverage AI, and drive more direct bookings, visit the Boostly website today.

The future of travel is AI-driven—stay ahead and book direct.