Global Hotel Groups Bet on Customer Loyalty To Beat Online and AI Agents

The world's largest hotel chains are aggressively pushing customers toward direct bookings as they brace for a future where AI 'agents' could reshape how travelers find and reserve rooms. Marriott, Hilton, Hyatt and Wyndham have all expanded their loyalty programs and perks in recent months, aiming to reduce their reliance on online travel agents like Expedia and Booking.com that typically charge commissions of 15 to 25%.

Marriott's Bonvoy program reached almost 260 million members by the end of September, an 18% jump from the prior year. Hilton has lowered the barriers to elite status and struck partnerships that let members spend points outside its hotel portfolio.

AI-powered booking tools could route customers away from brand-conscious decisions, but they could also offer hotels a cheaper distribution channel than traditional OTAs. Marriott CFO Leeny Oberg said at a conference this month that AI bookings 'could potentially be cheaper than the OTAs.' Wyndham CEO Geoff Ballotti called tools like ChatGPT and Gemini 'a unique opportunity' to reduce OTA dependency.

Read more of this story at Slashdot.