Travelers Want AI to Help Plan, But Trust Brands to Book
Travelers are using AI earlier in the trip-planning process than ever before, but pulling back when it comes time to transact. A new report from ChatGPT platforms and hotel networks shows the industry is now building infrastructure to close that gap.
Expedia Group's AI Trust Gap report surveyed more than 5,700 adults across the U.S., U.K., and India. The findings split sharply between discovery and booking. Fifty-three percent of travelers are comfortable letting AI suggest travel options. Forty-two percent use or would use AI to monitor prices. Forty percent use it to build itineraries. Nearly half say AI saves them time and surfaces places they would not have found otherwise.
The booking picture is entirely different. Only 8% feel comfortable booking through an AI platform. Two-thirds would not trust an AI assistant to buy or book anything on their behalf.
Loss of control, payment and data privacy, and misuse of personal data are the top three concerns, each cited by more than half of respondents. Xavi Amatriain, Chief AI and Data Officer at Expedia Group, said travelers do not have a technology problem with AI-they have a trust problem. Building that kind of trust requires decades of real-world relationships and customer support.
For hotels, the implication is clear: AI will drive discovery and inspiration, but the brand relationship remains the deciding factor at the point of purchase.
Travel Sector Posts Record $11.6 Trillion Year
Travel and tourism delivered its best year on record in 2025, contributing $11.6 trillion to global GDP, equivalent to 9.8% of the global economy. The sector grew 4.1%, outpacing overall global economic growth of 2.8% by nearly 50%.
The sector supported 366 million jobs worldwide and accounted for 1 in 3 new jobs created globally. International overnight arrivals reached 1.54 billion, or roughly 4.2 million people traveling every day.
Regional performance diverged sharply. Asia-Pacific recorded 8.1% growth in travel and tourism GDP, reaching $3.29 trillion, driven by reopening momentum and rising international demand. North America grew just 1.0%, with travel and tourism GDP of $3.05 trillion, reflecting continued challenges in international visitor recovery.
SiteMinder Opens 53,000 Hotels to AI Booking Platforms
SiteMinder announced two platform expansions that move its network of 53,000 hotels into AI-era distribution. Through Demand Plus, hotels will now appear in AI-driven conversational environments including ChatGPT, with travelers able to view live rates and complete reservations on the hotel's own booking page.
Through Channels Plus, AI-enabled OTAs and intermediaries that search and book on behalf of travelers will gain access to SiteMinder's hotel inventory. The full guest experience from discovery to confirmed booking takes place within the partner platform.
Both expansions use Model Context Protocol, a technical standard that gives AI platforms access to live hotel data in real time rather than static information. SiteMinder's own Changing Traveller Report 2026 found that eight in ten travelers now want AI assistance during their booking journey, giving the infrastructure announcement its commercial urgency.
Sankar Narayan, SiteMinder CEO, said the move extends the company's core purpose: helping hotels remain visible and bookable as AI becomes a larger part of travel planning.
Market Signals
Personalization and Sustainability Drive Revenue
Amadeus' Travel Dreams 2026 report, based on 6,000 travelers and 500 hoteliers across nine countries, found that 74% of travelers want personalization. Sustainability commands an 11.7% rate premium.
Travel is increasingly used as a mental health reset, with 41% of travelers aspiring to return with a calmer nervous system. Early check-in, late check-out, room view selection, and sleep optimization packages are the top revenue-generating attributes. Amadeus modeling shows a 150-room mid-scale hotel could generate over $1 million in incremental annual revenue by retailing these services effectively.
GEO and SEO are now the top demand-generation priority for hoteliers, with 69% of travelers relying solely on AI search summaries for discovery. The average hotel budgeted $320,000 for AI in 2026, rising to $400,000 in the U.S.
Milan and Paris Set March Records
Milan hotels achieved a March ADR record of €202.42, driven by the convergence of Fashion Week, the MCE tradeshow, and the Winter Paralympics. The combination demonstrates how supply-constrained markets respond when multiple demand drivers align.
Paris March ADR reached €438 at 88% occupancy. Fashion Week and a strong concert calendar drove record performance, with the city's hotel market operating near its ceiling on both price and volume simultaneously.
São Paulo Design Week Lifts Occupancy
São Paulo Design Week lifted March occupancy 13% to 67.8%, with ADR rising 7.4% to BRL871.48. Peak performance on March 11 coincided with the event's core programming. Event-driven demand continues to separate strong performance months from baseline in Latin American city markets.
World Cup Bookings Accelerate Months Early
RateGain launched a free dashboard tracking flight and hotel bookings across FIFA World Cup 2026 host cities. Current data already shows double-digit growth in flight bookings in the majority of markets, months before the tournament begins.
New Openings and Signings
Jumeirah announced a phased restoration programme for Burj Al Arab. Hilton signed Paradise Breeze Nassau, Curio Collection by Hilton, expanding its Caribbean presence. The Langham Group announced The Langham Jinan, bringing luxury to Shandong's capital in the historic Honglou neighbourhood. IHG signed Kimpton Kota Kinabalu, adding a beachfront Malaysia property to the brand's Asia-Pacific footprint.
Autumn Griffith was appointed General Manager at Davidson Hospitality Group.
Learn more about AI applications in hospitality and events to understand how these shifts are reshaping operations and strategy across the sector.
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