Hilton AI Planner Focuses on Direct Bookings Amidst Customer Skepticism

Hilton has deployed an AI-driven trip planner designed to assist customers in organizing and booking their travel directly through the hotel chain. The tool, which leverages Anthropic's AI technology, had engaged in over 18,000 conversations with guests as of August, according to PYMNTS. Popular search destinations have included Orlando, Aspen, and the Caribbean.

The primary objective behind this initiative is to steer customers away from third-party booking sites such as Booking.com and Expedia, as well as newer platforms integrating hotel reservations. This strategy is crucial for Hilton's franchisees, as direct bookings reduce the commission paid to intermediaries. Already, more than 80% of Hilton's business originates from direct bookings, and CEO Chris Nassetta views AI as a means to strengthen these direct customer relationships.

However, traveler confidence in AI-driven booking remains a challenge. PYMNTS reports that only 2% of leisure travelers would allow an AI to book their trip. Hilton's own trend report indicates that while 22% trust AI for personalized itinerary creation, a significantly larger 70% place their trust in hotel staff.

Nassetta does not anticipate a radical transformation of the travel industry due to AI in the immediate future. During Hilton's April earnings call, he stated that he does not foresee the overall system changing materially anytime soon. Hilton's AI solutions are also being showcased within Google's AI Mode and ChatGPT.