AI Booking Is Under 2% of Volume, but Commercial Terms Are Being Set Now

AI-driven travel bookings are still small, but Skift argues the commercial terms are being set now, and sellers who wait will be "priced by someone else's integration."

Volume

Booking Holdings told investors that large language models account for well under 1% of its room nights. Bernstein's Richard Clarke put AI referrals below 2% at Booking and Marriott.

Who owns the transaction

Google's agentic hotel booking in AI Mode keeps the hotel or OTA as merchant of record, passing along only name, payment, occupancy and property while the conversation stays with Google. Meta's Muse agent books flights through Duffel's direct airline connection and, asked for a New York hotel, chose between Expedia and Hotels.com on its own. Muse pays with a one-time virtual card through Link by Stripe; Google's tool settles through Google Pay. Booking Holdings CEO Glenn Fogel said trust around payment details decides who gets the booking.

Loyalty under pressure

Hilton expects agents to reshop bookings until departure. In a McKinsey and Skift Research study, half of 1,000 U.S. travelers changed a confirmed stay after finding a better option; 44% book outside their preferred loyalty program on price and 55% would follow an AI tool to a better deal. Loyalty membership ranked last among reasons to trust an AI recommendation. Skift Research recommends on-property recognition.