A recent research report highlights that global online travel agency (OTA) platform stocks are under pressure. This is primarily due to market concerns regarding new AI features recently introduced by Alphabet (GOOGL.US) in its search engine. These features offer a "personalized travel concierge" service, potentially enabling AI to connect directly with travel suppliers, thereby challenging the traditional role of OTAs. The analysis suggests that the primary customer acquisition channels for OTAs may undergo significant changes. It will be crucial to monitor the progress of collaborations between various OTA platforms and AI companies, and assess their ability to successfully transform amidst this industry shift. For China's hotel and travel sector, which demands higher supply chain capabilities and fulfillment guarantees, the impact of AI is expected to be relatively delayed. Nevertheless, enhanced cooperation between OTAs and Generative AI this year promises noteworthy outcomes.

The core viewpoints are as follows: Alphabet is integrating its various AI search functionalities into a unified workflow. Users will no longer need to rely on traditional keyword searches followed by clicking links to plan trips. Instead, through conversational interaction, an AI Agent will directly handle tasks such as searching, browsing, and booking. Furthermore, Alphabet has launched "personal intelligence" features for paid AI Pro and AI Ultra subscribers in the US. This functionality can access flight/hotel booking information from a user's Gmail and travel photos from Google Photos, eliminating the need to repeatedly input preferences and directly generating personalized product and service recommendations.

Market apprehension about Generative AI displacing OTAs began late last year. In November 2025, Alphabet announced the addition of a feature allowing users to employ the Canvas tool within its AI mode for organizing travel plans. Canvas is defined as an "AI-driven collaborative space" capable of pulling real-time data on flights and hotels, integrating it with Google Maps data, and generating comprehensive, visual itineraries. Additionally, Alphabet has expanded its Flight Deals service to over 200 countries and regions. From a supplier perspective, Alphabet has engaged in deep collaborations with major hotel chains like Marriott, InterContinental, and Wyndham.

The analysis posits that the supply chain and fulfillment value provided by OTAs remains high and is difficult to replace in the short term. Firstly, integrating supply chains is complex. While large hotel chains are relatively easier to connect with directly, a significant portion of the market consists of non-standardized, independent hotels whose integration with AI systems may take considerable time. Secondly, travel is a high-value, relatively non-standardized product involving substantial fulfillment services. Numerous specific, unexpected, and non-standard scenarios still require significant manual intervention.

Regarding implications for domestic OTAs: comprehensive platforms are competing for AI traffic entry points, while specialized vertical platforms are actively embracing the technology. Early in 2026, Alibaba announced the full integration of its Qianwen AI across Taobao, Amap, and Fliggy, aiming to create an industry benchmark through an internal closed-loop system first. The analysis believes that China's hotel and travel sector imposes higher demands on supply chain capability and fulfillment assurance. Furthermore, brand recognition for Chinese OTAs has been solidified over many years. Unlike overseas OTAs, which relied more on PC bookings and experienced faster traffic shifts, China's market dynamics suggest a relatively delayed impact from AI. However, the intensified cooperative exploration between OTAs and Generative AI this year yields promising potential results.

Risks include the pace of technological iteration and potential macroeconomic weakness.