Major OTAs spend US$ 5.37 billion on marketing amid AI shift

Major Online Travel Agencies (OTAs), including Airbnb, Expedia Group, and Booking Holdings, spent approximately US$ 5.37 billion on marketing during the second quarter of 2026. This spending level remains consistent with the previous year as companies navigate a shifting landscape toward direct traffic and AI-driven distribution models.

Booking Holdings accounted for the largest portion of this investment, increasing its marketing expenses by 11% year-over-year to US$ 2.37 billion. CFO Ewout Steenbergen attributed this rise to changes in the traffic mix and a shift toward performance marketing. Meanwhile, the industry is preparing for the rise of AI agents and agent-commerce, where consumers may delegate research and bookings to automated systems.

In the broader digital advertising sector, the introduction of ads to platforms like ChatGPT is expected to shift focus from user demographics to real-time intent. Experts suggest that generative AI allows advertisers to understand specific consumer needs during a conversation, potentially making ads more contextualized. However, this transition poses challenges regarding user trust and the need to clearly distinguish sponsored content from AI-generated responses.