"How will AI solutions allow hotels to shift bookings away from the OTAs onto the direct channel?" - an AI synthesis

12 experts shared their view in an article of Hospitality Net and ChatGPT produced the following summary:

"The article discusses how AI solutions are poised to enable hotels to shift bookings away from Online Travel Agencies (OTAs) onto their direct booking channels. Here are the major learnings from the article:

1. AI's Immense Potential: In 2023, AI solutions, particularly those based on generative artificial intelligence models like ChatGPT, offer numerous benefits to the hotel industry. These benefits span operational efficiencies, improved guest services, unique experiences, and precise guest segmentation.

2. Chatbots as Key Tools: One of the most immediate applications of AI for hotels is the use of chatbots. Chatbots can enhance the user experience on hotel websites by providing easy access to information about properties and enabling transactions like room reservations and package bookings.

3. Competition from OTAs: Booking Holdings and Expedia are actively testing and implementing AI-based travel planning toolkits, including ChatGPT, in an effort to keep travelers within their platforms. This creates a competitive landscape where hotels are racing against OTAs to capture direct bookings.

4. Benefits of Direct Bookings: The article highlights the advantages of direct bookings for travelers, such as better room options, onsite rewards, and loyalty program benefits. Hotels need to offer a seamless and convenient user experience on their websites to entice guests to book directly.

5. AI as a Branding Tool: AI can provide detailed information and personalization, enhancing the user experience. However, it's noted that branding and marketing still play a significant role in attracting guests to book directly, making AI a valuable addition rather than a sole solution.

6. Addressing Visibility Challenges: While chatbots can improve conversion on hotel websites, they don't address the core issue of visibility. The article suggests that hotels should focus on enhancing website content and functionality to improve search visibility.

7. AI's Role in Pricing and Personalization: AI can optimize pricing in real-time, reducing the need for guests to visit OTAs for price comparisons. It also allows hotels to cater to a broader audience by offering tailored suggestions and swift responses to inquiries through chatbot integration.

8. Long-Term Impact of AI: AI is expected to change the way guests interact with information and experiences, potentially leading to the emergence of new marketing and distribution channels. However, effective AI adoption requires investment and staff training.

9. OTAs' Advantage in Trip Planning: OTAs excel in consolidating a traveler's overall travel experience, including flights, rental cars, and local events. Hotels using AI to manage these aspects risk diluting their brand identities and may lack the resources to do so effectively.

10. AI's Role in Direct Bookings: AI is expected to deliver seamless and personalized booking experiences on hotel websites' direct channels. While OTAs will remain a necessary channel for bookings, AI can optimize pricing and user experiences, making direct bookings more appealing.

In conclusion, the article explores the potential of AI to transform the hotel industry by improving direct bookings and enhancing the guest experience. While the competition with OTAs remains fierce, AI offers hotels a valuable tool to attract guests and increase their direct bookings."