In Brief: Generative AI is reshaping how travelers discover destinations, research accommodations, and make booking decisions, creating new challenges and opportunities for hotels and travel brands. Speaking at Phocuswright Europe in Barcelona, industry experts emphasized that AI-driven search is becoming a critical channel for customer acquisition, requiring hospitality companies to adapt their digital visibility strategies to remain competitive in an increasingly AI-powered travel marketplace.
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Generative AI is changing the way travelers discover and book accommodations, prompting hotels and travel brands to adapt their online strategies as search and visibility rules evolve.
AI Alters the Landscape of Travel Planning
Generative artificial intelligence (gen AI) is having a significant impact on how travelers plan their trips and how travel brands are found online. At the recent Phocuswright Europe conference in Barcelona, industry experts discussed the implications of these changes for hotels and travel companies. John Matson, chief revenue officer of Propellic, and Carlo del Mistro, founder of Stiplo, highlighted the growing importance of AI-driven search and the challenges brands face in maintaining visibility in this new environment.
Understanding AI Visibility and Its Challenges
Carlo del Mistro noted that many hotel managers and owners are concerned when their properties do not appear in the results of AI-powered tools like ChatGPT. He compared the current state of AI visibility to the early days of search engine optimization (SEO), explaining that the factors influencing visibility are not fully understood and are subject to frequent changes. Del Mistro emphasized that the industry is still learning what drives AI-based ranking, and that strategies must adapt as the technology evolves.
John Matson agreed, stating that tracking visibility in AI-driven search is still in its early stages. He pointed out that while it is difficult to determine which methods are most effective, companies can use statistical measurements to assess whether their efforts are improving visibility for specific types of queries.
Generative Engine Optimization Gains Importance
As AI becomes more integral to travel discovery, generative engine optimization (GEO) is emerging as a key focus for travel brands. Although platforms like ChatGPT and Claude currently generate a relatively small share of referrals to hotel websites, del Mistro said this share is growing rapidly. He also noted that visitors referred by AI tools tend to be more qualified, as they have typically done more research before arriving at a hotel’s website, resulting in higher conversion rates.
SEO Remains Relevant in the AI Era
Despite the rise of generative AI, traditional SEO continues to play a significant role in online visibility. Both Matson and del Mistro agreed that SEO remains a major factor, especially since large language models (LLMs) often use search rankings in their algorithms. Del Mistro pointed out that the importance of SEO can vary depending on the AI model used, as some models are more closely aligned with specific search engines.
Suppliers May Gain an Advantage
The discussion also addressed the potential shift in the balance of power between travel suppliers, such as hotels, and online travel agencies (OTAs). Matson expressed optimism for suppliers, arguing that they have an advantage because they can develop new products using their physical assets and maintain direct relationships with travelers. This access to first-party data could help suppliers strengthen their positions as AI-driven discovery becomes more prominent.
Additional Factors in AI-Driven Travel Discovery
Other topics covered in the interview included how destinations can influence AI recommendations, the role of metadata in improving visibility, criteria for selecting AI visibility partners, and the continued importance of maintaining effective websites. The experts agreed that as AI tools become more influential in travel planning, brands will need to continually adapt their strategies to remain visible and competitive in this changing landscape.
Source: View the original article at PhocusWire.
