What will be the impact: significant as the Internet or as insignificant as blockchain and the metaverse?.

This was the question I asked a world panel of technology experts.

There have been heated discussions in hospitality about the impact of agentic AI on the industry. From proponents predicting that it will “change everything in travel and hospitality”, to detractors who are skeptical about its immediate value proposition and useful applications. In the past, we have had similar heated discussions about the impact of the Internet, blockchain and the metaverse.

Agentic AI in travel and hospitality is a type of AI that makes autonomous travel decisions and takes actions to achieve specific tasks and goals, from travel planning, research of locations, amenities and rates, to booking hotels, flights and all of the necessary travel auxiliaries to make their master’s trip a success.

Some experts believe that agentic AI will disintermediate the OTAs and allow hoteliers to sell directly on the GenAI platforms like ChatGPT, Claude, Grok and Gemini.

Other experts believe Google’s approach to agentic AI is the correct one. In Google’s own words: “To make agentic AI a reality, Google is working on building out the experience with industry partners such as Booking..com, Expedia, Marriott International, IHG Hotels & Resorts, Choice Hotels International and Wyndham Hotels & Resorts.”

The question is, what will be the impact of Agentic AI in hospitality: significant as the Internet or as insignificant as blockchain and the metaverse?

Here is take:
Agentic AI is not a tool. Excel is a tool. Similar to the Internet, AI is not a tool, but a transformational technology with huge economic, social, educational, cultural and behavioral implications.

In the same time, Agentic AI is NOT a booking channel. At least, not yet. At this point AI platforms like ChatGPT and Gemini and their agentic AI applications are mere “travel discovery facilitators”, responsible for 15% of travel discovery. The remaining 85% of discovery? Good old search engines, social media, friends and family recommendations, influencers, etc.

Travelers are using AI to plan trips, but only 8% are comfortable letting it handle bookings, according to a new survey from Expedia Group.

Travel discovery is just the beginning of the very convoluted, very complicated travel consumer journey. The Digital Customer Journey is like a meandering river with dozens of digital touch points (Google claims 48 of those). In my view, LLMs will become just one of these touch points.

After 25 years of trying hard to become a one-stop-travel booking platform (Remember the failed “Book on Google?”), Google has become just one of these touch points.

Recently, Julie Farago, Google’s vice president for Travel and Local, sought to clarify the company’s intentions. “Google has no intention of becoming an online travel agency,” she said.

Max Starkov
Hospitality & Online Travel Tech Consultant & Strategist

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