Direct bookings take the lead
The research, based on the analysis of more than 300 booking journeys, 71,000 words of transcripts, and thousands of clicks in real-world AI Mode scenarios, shows that fewer than 10% of bookings were completed via OTAs. In contrast, 56% of transactions were made directly with hotels or activity suppliers.
For OTAs, this indicates a growing need to rethink their approach. Without investment in geo-targeted strategies, AI-ready content, and booking incentives, their role in the customer journey risks further erosion.Best vacation packages
Google Business Profile as the new storefront
Another critical finding is the rise of Google Business Profiles as the main point of contact for travelers. As Google embeds local packs and business profile cards directly into AI-generated responses, users engage with reviews, prices, photos, and booking links before even reaching traditional search results. This shift means that, for many hotels and travel businesses, the Google Business Profile has effectively become the primary storefront, surpassing the traditional website in visibility and function.Best vacation packages
Optimizing these profiles to appear prominently in AI results has therefore become essential. For travel professionals, this suggests a reallocation of marketing focus to ensure accurate, compelling, and complete information is available within Google’s ecosystem.
AI Mode reshaping the travel funnel
Traditionally, travel marketing strategies have followed the phases of “dreaming, planning, booking.” However, large language models (LLMs) are collapsing this funnel into a single environment where information gathering, comparison, and decision-making all occur.
According to Propellic’s analysis, AI Mode not only pushes traditional search results further down the page but also integrates recommendations and inline links directly into conversations. The only step currently requiring users to exit AI Mode is the final booking transaction.Best vacation packages
For travel marketers, this shift underscores the importance of being present within AI-generated responses. Appearing in inline text links within those responses carries far more weight than citations listed separately, as users tend to click directly on the highlighted references.Best vacation packages
Traveler behavior in AI Mode
The study revealed several notable changes in user behavior:
High trust in AI suggestions: Destinations, hotels, and activities recommended by AI scored 4.3 out of 5 in consumer trust ratings, translating into higher conversion potential.
Longer, conversational prompts: Average query lengths have more than doubled, showing travelers increasingly interact with AI through detailed, conversational searches rather than simple keywords.
Direct clicks on inline links: Users overwhelmingly clicked on inline citations embedded in the text, bypassing traditional search paths.
Implications for the industry
These developments suggest that yesterday’s digital marketing best practices no longer align with current traveler expectations. To remain competitive, travel brands need to structure content across websites, Google Business Profiles, and other channels in ways that anticipate conversational queries and user intent within AI environments.Best vacation packages
As AI continues to dominate the search landscape, the ability to adapt quickly will determine which brands succeed in maintaining visibility and capturing bookings. For hoteliers, tour operators, and destination marketers, the priority is clear: embrace AI-ready strategies now, or risk losing ground to competitors who do.
Tags: Artificial Intelligence (AI) Online Travel Agencies (OTAs) Propellic
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