Online travel turns to AI as travelers increasingly book directly
Trivago’s investment in AI technology could be helpful in reigniting it’s business in regions such as Europe and Asia-Pacific, where the share of hotel lodging sales made by OTAs might have peaked.
In Europe, OTAs have consistently captured at least 70% of digital hotel and lodging sales in each of the last several years, according to estimates by UBS. But that share has been slipping very slowly, as travelers increasingly favor direct bookings with brands.
The Asia-Pacific region will follow a similar downward trajectory, with third-party digital players – which have captured close to 70% of the digital hotel booking business in recent years – seeing their share drop slowly.
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Accommodations providers aren’t the only ones feeling the pinch. eMarketer expects growth in worldwide digital travel sales for leisure and unmanaged business travel overall to slow to 11.7% this year, down from 13.6% in 2016. That growth rate is projected to slacken to 7.6% by 2021.
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