Agentic AI has shown impressive potential across use cases, from writing emails to managing shopping. The next frontier is travel, where AI making bookings on your behalf is yet to come but sounds both exciting and disruptive. But in hotel reservations, this vision faces significant hurdles that could keep it from becoming a mainstream distribution channel.
NB: This is an article from mirai, one of our Expert Partners
Subscribe to our weekly newsletter and stay up to date
Let’s explore the main barriers to its success:
Privacy concerns
Hotel bookings require sensitive personal data: full names, emails, travel dates, loyalty IDs and payment info. For agentic AI to book end-to-end, it must process and transmit this data securely. But where is it stored? Who owns it? In highly regulated markets like the EU (GDPR) and California (CCPA), these questions raise major concerns. Without trust and transparency, both users and suppliers may hesitate.
Payment friction (especially in the EU)
Legislation such as PSD2 requires two-factor authentication (2FA) for online payments. How can agentic AI complete a hotel booking if the user needs to confirm payment on a device? Without a seamless way to handle 2FA, automated bookings could stall at checkout. Stripe has announced it can be integrated in agentic workflows and handle 2FA. Agents are not truly “end-to-end” autonomous, but it orchestrates the process smoothly.
Lack of supplier support
Major hotel chains and OTAs have invested heavily in their direct platforms and loyalty ecosystems. They want to own the guest relationship, not lose it to an AI intermediary. From their view, agentic AI risks raising costs, lowering control and distancing them from customers. Without supplier buy-in and clear consumer demand, the channel will struggle to scale.
Who handles customer service?
What happens after a booking? If the guest needs to cancel or modify, do they contact the AI, the hotel or the OTA? This lack of clarity creates confusion and erodes trust. Poor support experiences could discourage future use.
Booking complexity
Hotel bookings are loaded with variables:
