IHG Hotels & Resorts is participating in Google's agentic AI booking pilot, which lets guests book hotels directly through Google's AI Mode experience, the company said Tuesday alongside its half-year 2026 results. The pilot processes these bookings as direct reservations, and guests can also be redirected to IHG's website for loyalty member rates. The hotel group is also part of Google's Direct Offers pilot, which surfaces promotions during AI-assisted trip planning with a link to book on IHG's site.
Google announced agentic booking capabilities for restaurants and event tickets last November, with plans to extend the feature to flights and hotels. Julie Farago, Google's VP of engineering for travel and local search, said at the time that the company was working with Booking.com, Expedia, Marriott International, IHG, Choice Hotels International and Wyndham Hotels & Resorts. Booking Holdings CEO Glenn Fogel confirmed his company's involvement in the pilot during its second-quarter earnings call last week, saying it was "working hard" with Google on the initiative.
AI across hotel operations
During IHG's earnings call, CEO Elie Maalouf discussed the company's broader AI strategy, which he grouped into three areas: guest acquisition and loyalty, hotel performance, and corporate efficiency and innovation. He pointed to IHG's AI-enhanced revenue management system, saying it had "unlocked revenue uplift and market share gains for our owners."
"Together, these capabilities are strengthening our direct channels, creating better experiences for guests, enhancing hotel profitability for owners and supporting an even more efficient and scalable cost base for IHG," Maalouf said.
IHG is also in the final stages of upgrading its hotel technology stack, including the rollout of its cloud-based property management system, which is expected to reach 4,000 hotels by the end of 2026. The company recently launched AI-enabled natural search across its website and mobile app, and unveiled a plugin in ChatGPT that provides users with real-time hotel information. For professionals looking to understand the underlying technology, ChatGPT Courses cover practical applications of the same tools IHG is deploying.
Marketing efficiency and cost questions
Maalouf said AI is making IHG's marketing programs more efficient and cheaper to produce, generating "faster turnover, more marketing per dollar, more effectiveness per dollar." But he declined to put a percentage on cost savings for hotels, saying it was too early for anyone in the industry to quantify because AI is an "evolving technology."
The company reported total revenue of nearly $2.7 billion for the first half of 2026, up 5.6% year over year. Operating profit rose 10% to $665 million for the same period.
Why this matters for hospitality and events professionals
Agentic booking shifts how guests find and reserve hotels: instead of searching, comparing and then visiting a brand site, travelers can complete a booking inside Google's AI interface. For hotel and events teams, that means direct bookings may arrive through channels that bypass traditional search and booking flows. Understanding how these AI-driven distribution channels work will matter for revenue management, commission structures and loyalty program strategy. AI for Hospitality & Events resources can help professionals assess which of these developments affect their day-to-day operations.
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