A new era of AI-assisted travel planning has begun. It’s more personalized, more contextual, and increasingly action-oriented. Hotels that fail to adapt risk losing visibility and bookings, while those that act early stand to gain a meaningful competitive advantage.
The state of search in 2025
Search is shifting from ranked blue links to curated, conversational recommendations.
Since Google’s launch in 1998, online search has been built on keywords, rankings, and backlinks. Generative AI is rewriting that playbook with personalized, real-time responses in natural language.
Generative AI (genAI) refers to AI systems that can create new content, including text, images, audio, and video, by identifying patterns in large data sets. A key category of genAI is large language models (LLMs), which are designed to understand and generate human language. Users interact with these models through chat-style interfaces.
“The way brands are discovered online is being rewritten. Traditional SEO is giving way to a new reality: visibility in AI-generated answers is now an additional frontline,” says Mathias Ptacek, Founder of Rankscale, a tool that tracks AI search engine visibility for brands. “Our data shows that over 40% of brand impressions in engines like ChatGPT and Perplexity come from third-party citations—forums, blogs, news, and expert reviews. Brands with more unique citations are not only more likely to be listed by AI, but also rank higher in responses. It’s no longer about just driving website visits; it’s about being the trusted source AI highlights at the moment of users’ highest intent.”
The rise of AI recommendations presents new challenges and opportunities for digital marketers. According to Ahrefs, a leader in SEO, 63% of websites now receive traffic from AI chatbots. However, these platforms often prioritize direct answers over external links, fueling the rise of “zero-click” results and reshaping how businesses are discovered online.
The rules of travel discovery are being rewritten. Travelers no longer scroll through search results; they ask AI and get one answer. This report is the hospitality industry’s first in-depth look at how those answers are made. At Cloudbeds, we’re sharing these insights to help hoteliers lead in this new era of travel discovery.
Generative AI in travel search
AI engines currently drive a small share of referral traffic to websites, but that share is growing rapidly, especially in the travel sector. According to Adobe, traffic from AI sources to U.S. travel and hospitality sites surged 1,700% between July 2023 and February 2024. Nearly 30% of travelers have already used genAI to plan a trip, and 84% say it enhanced their experience.
Rather than typing generic queries like “hotels in Paris” and sorting through search results, travelers can now ask chatbots more specific prompts, such as, “Where should I stay in Paris near the Eiffel Tower for a romantic anniversary trip for under $300/night?” In return, they receive highly personalized recommendations.
Even more transformative is the rise of agentic AI, which is just beginning. AI agents go beyond answering questions to taking action on behalf of users. Functioning like digital travel assistants, they can plan itineraries, book accommodations and tickets, and manage trip logistics in real-time.
What this means for hotels
With AI reshaping how travelers discover and evaluate accommodations, visibility and recommendations are becoming increasingly important alongside traditional rankings. As AI-driven search grows, hotels that don’t appear in responses risk being overlooked in travel planning.
Generative Engine Optimization (GEO) is, therefore, becoming an essential strategy for building presence across AI-powered platforms.
