OTAs aren’t just competing with each other anymore; they’re competing to define the future of travel discovery.
AI trip planners, social commerce, new regulations, and shifting traveler expectations are changing how people search, compare, and book hotels. The biggest platforms are investing billions to stay ahead, while independent hotels are navigating new opportunities to reach guests directly.
The online travel market is projected to surpass $1 trillion by the early 2030s, with online sales expected to account for 76% of total travel revenue by 2029. The opportunity isn’t getting smaller, but the playbook for winning bookings is changing fast.
Here are the five OTA trends every hotelier should be watching in 2026.
Trend 1: Agentic AI moves from novelty to default
AI in travel has passed the novelty phase. As of 2026, 56% of U.S. leisure travelers use AI for travel planning, making it one of the fastest shifts in traveler behavior the hospitality industry has seen in years.
But the meaningful shift isn’t in AI-assisted search — it’s in agentic AI: systems that don’t just answer questions, but autonomously execute multi-step tasks on the traveler’s behalf. In experimental deployments, AI agents like ChatGPT’s Agent Mode have successfully planned complete multi-day trips by autonomously searching Airbnb, comparing options, and opening the reservation page — without the user ever navigating to Airbnb’s interface.
OTAs are racing to embed AI throughout the travel journey—from inspiration and trip planning to customer support and booking. Expedia Group has previewed Romie, while other major platforms are investing in conversational search and more personalized discovery experiences. The goal is the same: keep travelers inside their ecosystem for as much of the booking journey as possible.
There’s an important nuance for hoteliers, though. A significant trust gap still exists around the final transaction: nearly 70% of travelers still prefer executing their final booking directly with a trusted travel brand rather than relying entirely on an AI agent. AI is dominating the top of the funnel but the final click usually still wants a human interface it trusts. OTAs currently hold a structural advantage here, as they are the brand the traveler already knows.
56%
of US leisure travelers use AI for planning
70%
of travelers prefer booking with a trusted travel brand
What this means for hotels
AI visibility starts with your OTA listings, but converts on your website. A hotel that’s well-listed on Booking.com and TripAdvisor is more likely to appear in AI recommendations; a hotel with a slow, poorly optimized booking engine will lose that referral back to the OTA.
The strategic priority is ensuring your website and booking engine can convert the billboard effect traffic that AI search is generating. Clean structured data, fast mobile load times, and frictionless checkout are no longer nice-to-haves but the mechanisms by which you capture AI-referred demand without paying a commission.
Trend 2: Social commerce becomes a genuine booking channel
In May 2026, TikTok launched TikTok GO in the United States, which is an in-app discovery and booking engine that lets users go from watching a hotel reveal video to completing a reservation without leaving the app. Backed by deep API integrations with Booking.com, Expedia, Viator, GetYourGuide, and Trip.com, TikTok GO is booking real rooms at real properties right now.
Travel content on TikTok generates 15.8 billion monthly impressions globally, with hotel-specific content averaging 7.3% engagement rates (more than four times the industry average). TikTok GO’s in-app booking conversion rates are running at 3.2–6.7%, dramatically above standard digital advertising benchmarks.
16B
month impressions generated by travel content
7.3%
engagement rates for hotel-specific content
For hotels, this is a double-edged channel. The demand generation is real and reaches younger travelers at scale. The structural catch is that bookings facilitated through TikTok GO flow through the OTA’s embedded infrastructure which means standard OTA commission rates apply, and critically, the property gets no first-party guest data. The social platform and the OTA share the customer relationship; the hotel delivers the stay.
What this means for hotels
Don’t ignore social commerce but don’t let it deepen OTA dependency without a counter-strategy. The playbook is the same as the billboard effect: use the social channel to get discovered, then create pathways for the guest to engage with your owned channels before and after the stay. That means capturing email and contact information at check-in, a post-stay communication sequence, and a reason to book direct next time.
Trend 3: Drip pricing is being legislated out of existence
North American legislators have moved aggressively against drip pricing — the practice of displaying a low base rate and only revealing mandatory fees (resort fees, cleaning fees, service fees) at the final checkout step. The pattern was widespread in short-term rentals and hotel OTA listings, where artificially deflated headline rates gamed price-sorting algorithms to capture initial clicks.
For OTAs, this creates significant compliance complexity — laws vary by state, and geo-targeting price displays differently by IP address creates class-action exposure. Major platforms are restructuring how they display rates nationally to reduce that risk.
For hotels, revenue management strategies that relied on backend fees to keep headline rates competitive are now legally prohibited in a growing number of markets. Room rates need to absorb those costs upfront, which changes how competitive pricing looks in search results and how guests perceive value at the property.
What this means for hotels
The pricing transparency mandate actually creates a more level playing field if your property delivers genuine value. But it does require a revisit of your rate-setting strategy. If your ADR effectively absorbed fees that are now prohibited or legally required to be disclosed upfront, your headline rates need to reflect the total cost.
Strong digital assets (quality photography, detailed descriptions, verified reviews) are what justify higher upfront visual pricing when a guest is comparing your now-transparent rate to a competitor’s.
Trend 4: OTA business models are diversifying
The classic OTA playbook — aggregate inventory, invest heavily in paid search, take 15–30% commission on every booking — is under pressure from multiple directions simultaneously. Two significant pivots are redefining what an “OTA” looks like.
The subscription model: Instead of relying solely on commissions from individual bookings, some OTAs are building subscription programs that reward travelers for booking repeatedly through the same platform. Members pay an annual fee in exchange for exclusive discounts and travel perks, giving OTAs a more predictable revenue stream while encouraging customer loyalty.
eDreams Odigeo’s Prime program has grown to more than 8 million members, demonstrating that travelers are willing to pay for ongoing travel benefits. By encouraging repeat bookings through a subscription rather than reacquiring customers for every trip, these programs reduce marketing costs and strengthen customer loyalty.
The B2B fintech pivot: Hopper’s B2B division (Hopper Technology Solutions) now accounts for 75% of the company’s overall business, serving over 175 million travelers. Its model isn’t built on booking commissions, but on financial products: Price Freeze, Cancel for Any Reason, and Disruption Assistance. Rather than competing with hotels for direct bookings, Hopper has repositioned itself as embedded commerce infrastructure, licensing its products to airlines, hotels, and financial institutions.
What this means for hotels
These model shifts signal that the OTA market is maturing and diversifying, which tends to be good for independent hotels. More OTA business models mean more differentiated distribution options. The subscription OTA model in particular creates loyalty dynamics that can be favorable: a subscriber who’s committed to a platform books more frequently and tends to be a higher-quality guest.
Trend 5: Sustainability is now a distribution factor, not a brand attribute
Sustainability has become more than a brand differentiator; it’s increasingly influencing how travelers search for and choose hotels. In 2025, travelers booked more than 100 million room nights at properties displaying verified sustainability certifications on Booking.com, while the number of certified properties on the platform grew 22% year over year.
Major OTAs now allow travelers to filter specifically for certified sustainable accommodations, and 36% of travelers say they intend to use these filters when planning future trips. For corporate travel buyers with ESG requirements, sustainability credentials have also become an important consideration during the booking process.
100M
room nights booked at sustainable hotels
22%
YOY growth of certified properties
36%
of travelers intend to use sustainability filters
What this means for hotels
Sustainability certification is a visibility advantage. Properties with recognized third-party certifications are more likely to appear in filtered search results and attract travelers actively looking for sustainable accommodation. As OTAs continue expanding sustainability features, verified certifications will play an increasingly important role in helping hotels stand out.
The through-line: OTA reach, direct conversion
Every trend on this list points to the same reality: travelers are discovering hotels in more places than ever before. AI assistants, social platforms, sustainability filters, and evolving OTA experiences are creating new paths to your property—and new opportunities to be found.
The challenge isn’t choosing between OTAs and direct bookings. It’s making sure your hotel is visible wherever travelers are searching, while giving them every reason to book direct when they’re ready.
Stay ahead of what’s next.
From AI to OTAs to direct bookings, Cloudbeds helps you reach travelers wherever they book.
