---
title: "AI Era Power Struggle: Airlines & Hotels vs. OTAs"
description: "AI is fundamentally reshaping the competitive landscape of online travel"
published: 2025-04-06T03:00:00+00:00
author: "ONDA 편집팀"
category: "Insights"
image: "https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/67f23631f9b1241e3b5cc634_onda.me_.png"
canonical: https://global.onda.me/en/blog?slug=ai-sidae-onrain-yeohaengyi-paegweoneun-hanggongsa-hotel-vs-ota
locale: en
---
# AI Era Power Struggle: Airlines & Hotels vs. OTAs

The online travel market is [projected to reach $1.97 billion by 2032](https://www.globenewswire.com/news-release/2025/04/01/3053241/0/en/Online-Travel-Market-to-Reach-USD-1970-million-by-2032-Airbnb-Trivago-Thomas-Cook.html). That's about 9% annual growth—sustained.

Meanwhile, **AI is fundamentally rewriting the rules** of this market. And the most interesting dynamic? A showdown between two key players: direct suppliers (airlines and hotels) on one side, and online travel agencies (OTAs like Expedia and Booking.com) on the other.

![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/67f22a38a703b14379301353_ChatGPT_Image_2025_4_6_03_47_30.png)

### **Direct Booking's Rise: Airlines and Hotels Strike Back**

One of the biggest shifts in travel lately? **Airlines and hotels are weaning themselves off OTAs and doubling down on direct channels.** According to Introspective Market Research, this trend poses a "serious challenge" to OTAs.

Take Marriott. [Hillary Cook, VP of Global Marketing Orchestration](https://www.ddaily.co.kr/page/view/2025032008475324841), shared that AI now generates over 500,000 content variations per campaign—soon to scale to 2 million—and has cut time-to-market by 70%. The result? Marriott exceeded its annual revenue target by 6x.

Marriott's AI doesn't stop at marketing. It **nudges business travelers to extend their stays** with personalized offers. You book a business trip, and your confirmation email suggests point bonuses and local activity discounts. Simple, effective.

Airlines and hotels are using AI to **personalize experiences, strengthen loyalty programs, and offer exclusive deals**—all to pull customers away from OTAs. This does two things: saves them commission fees and gives them direct access to customer data, which feeds even smarter AI services.

Here's the kicker: AI has democratized personalization. Mid-tier hotels and regional airlines can now offer the kind of tailored service that used to be OTA-only territory. That's eroding the traditional OTA value prop and shifting loyalty back to suppliers.

### **OTAs Fight Back: Platforms Armed with AI**

But OTAs aren't sitting still. They're **layering AI onto decades of data** to sharpen their core strengths: breadth of choice and price comparison.

Booking.com's AI travel planner and Expedia's real-time personalization engine are perfect examples. Per Introspective Market Research, Booking Holdings saw significant revenue gains thanks to AI initiatives.

Here's how OTAs are using AI to stay competitive:

1. **Operational efficiency**: Automating pricing analysis, booking flows, and data integration—cutting costs and improving service quality.
2. **Dynamic pricing**: Real-time analysis lets them undercut airlines and hotels on price.
3. **Personalized recommendations**: Massive datasets enable hyper-relevant travel suggestions that improve customer experience.
4. **24/7 support**: AI chatbots handle queries around the clock, boosting satisfaction.

![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/67f22b3570c885455920a24c_ChatGPT_Image_2025_4_6_04_20_16.png)

### **A New Travel Ecosystem Emerges from the Competition**

This battle ultimately benefits travelers. Better service, more options. But who wins long-term? Still unclear.

Direct channels will likely dominate **premium and business travel**, where loyalty programs and personalization matter more than price comparison. Airlines and hotels have the edge here.

OTAs will remain critical for **leisure travelers and price-sensitive consumers** who want to compare a wide range of options. OTA AI is especially useful for complex itineraries or multi-destination trips.

### **The Real Winner: Customers Who Use AI Well**

The true victor in the AI era? **Travelers themselves.** The competition is driving more personalized service, better pricing, and smoother booking experiences.

Over the next few years, we'll watch airlines and hotels expand their direct booking share while OTAs use AI to reinforce their strengths. The result? **A more dynamic, innovative online travel ecosystem.**

One thing's certain: AI is shaping the future of online travel, and whoever leverages it best will win. But the ultimate factor isn't technology itself—it's **how well you understand and meet customer needs.**