Booking Holdings’ Connected Trip Vision Faces AI Competition
Booking Holdings introduced its connected trip strategy in 2019 with the goal of creating a seamless travel experience. The vision promised to combine flights, hotels, car rentals, transfers, and activities into one connected journey. However, seven years later, the concept remains largely unfinished.
While Booking.com has successfully expanded beyond hotel bookings, many of its travel services still operate independently. As a result, travelers often face disconnected support when travel disruptions occur.
Growth Beyond Accommodation
Booking.com has significantly increased its presence in the flights market. The company also strengthened cross-selling for rental cars, airport transfers, and attractions. In addition, these businesses have become important revenue drivers.
Despite this growth, the overall travel experience remains fragmented. Flight and hotel bookings do not function as a fully integrated package, making itinerary management difficult during delays or cancellations.
Why the Connected Trip Remains Incomplete
Several technical and legal challenges continue to slow the connected trip strategy.
Flight Integration Challenges
Booking.com has relied heavily on Etraveli’s Gotogate platform for flight fulfillment. Previously, Booking Holdings attempted to acquire Etraveli to gain greater control. However, European Union regulators blocked the deal in 2023 over antitrust concerns.
Because of this, flight services remain partially disconnected from Booking.com’s broader travel ecosystem.
Building a Merchant Payment Platform
Booking Holdings also invested heavily in modernizing its payment infrastructure. Instead of relying mainly on the agency model, the company shifted toward a merchant model that processes customer payments directly.
Consequently, the merchant business grew from 27% in 2019 to roughly 70% of transactions in recent years. This change provides stronger financial infrastructure for integrated travel products.
Legal and Financial Risks
Creating a true connected trip involves more than technology. Moreover, travel package regulations require companies to accept greater responsibility when trips encounter disruptions.
For example, laws such as the EU Package Travel Directive require operators to provide alternative arrangements, accommodations, and customer support during major travel interruptions. These obligations significantly increase operational and financial risk.
AI Creates New Competitive Pressure
Artificial intelligence is creating a new challenge for online travel agencies. Meanwhile, agentic AI platforms aim to manage complete travel journeys rather than individual bookings.
These AI assistants can organize flights, hotels, transportation, and activities while responding to disruptions in real time. As a result, they could reduce online travel agencies to simple booking providers instead of primary customer platforms.
Booking Holdings believes the connected trip remains its best defense against this shift. By linking every travel service into one personalized itinerary, the company hopes customers will continue using its ecosystem instead of relying entirely on AI assistants.
The Road Ahead
Booking Holdings has already expanded its travel offerings and upgraded its payment systems. Nevertheless, it has not fully delivered the seamless connected trip experience first outlined in 2019.
As AI rapidly changes how travelers plan and manage journeys, the company faces increasing pressure to transform its vision into reality. Otherwise, AI-powered travel assistants may deliver the connected travel experience before Booking Holdings does.
