Hotels face growing pressure to turn AI-generated recommendations into profitable bookings as travellers increasingly use artificial intelligence to discover properties but continue to make reservations through established channels.
Seven in 10 travellers plan to use AI for hotel recommendations, yet only 3% book directly through it, according to research cited by Aven Hospitality. Nearly half still book through hotel websites or apps, highlighting the continued importance of direct booking channels.
Noreen Henry, chief revenue officer at Aven Hospitality, said AI is changing how hotels reach potential guests before they choose where to make a reservation.
"AI is absolutely moving hotel distribution upstream," Henry said.
The research also found that approximately one in three travellers have booked an AI-recommended hotel, indicating that the technology is already influencing purchasing decisions even when transactions occur through other channels.
Henry said travellers remain cautious about allowing AI to complete transactions, preferring to verify room details, full prices, cancellation terms and inclusions before paying.
"So AI may create the intent, but the hotel's direct channels have an important job," she said.
The shift means hotels must ensure their properties are accurately represented in AI-generated recommendations whilst making it easy for travellers to complete reservations.
Independent hotels could benefit from greater visibility. Aven's research found that 18% of travellers use AI because it introduces them to properties they might not otherwise have considered.
However, Henry cautioned that larger hotel brands retain advantages in scale, recognition and resources. Independent operators must clearly communicate distinctive amenities and services to improve their relevance in AI recommendations.
She also stressed that AI should support rather than replace human interaction, particularly for complex bookings, special occasions and service problems requiring personalised assistance.
