Online travel platforms are preparing for the rise of AI "agents" that can independently plan, compare, purchase, and manage travel on a traveler's behalf. This "agentic" AI is a significant push for the industry, with Booking Holdings committing $700 million to AI initiatives. However, despite these investments, a Skift Research study found that only 2% of US consumers would trust an AI agent to book a trip for them.
Key concerns revolve around the lack of existing infrastructure for consumer protection when AI-booked travel goes wrong. There are no clear standards for handling mistakes, determining liability, or ensuring refunds without human intervention. This "accountability gap" means that while travel platforms acknowledge AI-related risks to investors, they do not guarantee anything to consumers regarding AI errors. For example, Booking.com's terms of service state that bookings are made directly with the service provider, not Booking.com itself, and their terms require arbitration and waive jury trials. Air Canada was even ruled liable in a 2024 Canadian court case where its chatbot provided incorrect information about bereavement discounts.
Despite consumer wariness and unresolved liability questions, the industry views AI as a significant opportunity. Expedia's CEO, Ariane Gorin, emphasizes that travel is a high-stakes purchase, unlike a T-shirt that can be returned. Gareth Williams, founder of Skyscanner, highlights the negative public perception of AI compared to industry insiders. Nevertheless, major players like Priceline are rolling out advanced AI assistants such as Penny, which in early testing has shown increased engagement and conversion rates, and reduced customer support contacts. Priceline estimates users saved an average of nearly ten minutes per trip using Penny. Sabre CEO Kurt Ekert believes even a small percentage of global traffic picked up by AI agents could be a "game changer" for his company. Hotels are also accelerating their AI adoption, with over 20% of hospitality operators planning to dedicate more than half of their AI budgets to agentic tools in 2027, in part to reduce reliance on online travel agencies and increase direct bookings.
