Austin Study Shows Direct Bookings Surging As Google AI Mode Reshapes Travel Industry

Published on September 11, 2025

Austin has emerged at the centre of a significant shift in global travel behaviour as a new study reveals that direct bookings are dominating online travel activity. The Propellic research, conducted in collaboration with Clickstream Solutions and Growth Memo, shows that 56% of bookings tracked in Google AI Mode were made directly with hotels or activity providers. In contrast, less than 10% of observed bookings were made through online travel agencies (OTAs), signalling a major disruption in how travellers are choosing to book their journeys.

The study analysed more than 300 booking journeys and over 71,000 words of real user transcripts alongside thousands of clicks and actions in practical travel planning scenarios. Results indicate that OTAs face increasing competition from generative AI, which is reshaping the way decisions are made at every stage of the booking funnel.

Google AI Mode Restructures Travel Planning

The study highlights that Google’s AI Mode is no longer an optional feature but has become the central environment where travellers plan their trips. Traditional search results have been pushed further down the page, as decisions on destinations, hotels, and activities are now being finalised within the AI interface.

For decades, travel marketing strategies were structured around the “dreaming, planning, and booking” stages. However, large language models (LLMs) are now collapsing these stages into a single environment. This integrated funnel means that whichever travel brand secures visibility in AI Mode gains a clear competitive advantage.

Google Business Profile Becomes the New Storefront

One of the most striking outcomes of the research is the elevated role of Google Business Profile. The findings reveal that when users interacted with local packs or inline profile cards embedded in AI responses, they were more likely to engage with hotel websites, view reviews, compare prices, and browse photos directly within Google’s interface.

This evolution suggests that the traditional role of a hotel’s website is being overtaken by its Google Business Profile, which now functions as the primary storefront for potential customers. For hotels and travel businesses, optimising these profiles with accurate, AI-ready content is becoming critical for maintaining visibility and driving bookings.

AI Recommendations Inspire Trust and Conversions

The research further establishes that recommendations generated by AI carry a high level of trust among travellers. Destinations, accommodations, and activities suggested within Google AI Mode scored an average trust rating of 4.3 out of 5. This trust directly translates into increased conversions, giving brands featured within AI responses a clear advantage over those that remain in traditional search listings.

Another key behavioural trend observed is that users are most likely to click inline text links presented in AI responses. These links attract significantly more engagement compared to citation lists or external features, indicating that travel businesses must focus on achieving inline placements to secure traffic and bookings.

Conversational Prompts Replace Keywords

The study shows that traveller interactions in AI Mode are evolving beyond short keywords. Query lengths have more than doubled as users now rely on conversational prompts that reflect natural speech. These longer prompts enable AI systems to provide personalised and contextually relevant results, further reinforcing user confidence in the process.

This behavioural change renders many past search engine optimisation (SEO) strategies outdated. Travel businesses are being encouraged to restructure content across websites, Google profiles, earned media, and paid channels to match the new conversational search environment.

The Future of OTAs and Travel Marketing

The Propellic study warns that OTAs face a challenging future if they fail to adapt. The decline in OTA bookings highlights the urgent need for investment in robust geographic (GEO) strategies and AI-ready content that ensures presence within AI-driven travel planning. Incentives for bookings and more personalised content could be crucial to keeping OTAs relevant in a fast-changing ecosystem.

For travel brands, the message is clear: the future of travel marketing lies in continuously monitoring user behaviour, leveraging AI tools, and ensuring content is optimised for inclusion in Google AI Mode. Businesses that can evolve quickly will be best positioned to capture market share, while those that rely on outdated strategies risk being left behind.

Preparing for an AI-First Travel Future

As AI Mode becomes the dominant force in travel planning, it is essential for hotels, tour operators, and tourism stakeholders to rethink their marketing strategies. Content must be structured to answer user questions seamlessly, Google Business Profiles need to be meticulously maintained, and engagement strategies should reflect how travellers now plan and book.

The study underscores that travel decisions are increasingly made with speed, trust, and clarity through AI systems. While booking still requires users to move beyond the AI interface, all other stages of the journey are now integrated into this single environment. This collapse of the traditional funnel represents both a challenge and an opportunity for the travel industry.

Austin Study Highlights a New Era in Travel

Austin’s Propellic-led research marks a turning point for the global travel industry. Direct bookings now dominate, OTAs face unprecedented challenges, and Google AI Mode is firmly shaping the future of travel behaviour.

For travellers, this shift brings greater confidence and convenience. For businesses, it demands rapid adaptation, investment in AI-aligned strategies, and a clear understanding that the traveller journey now begins and ends within AI Mode. Those who evolve with these changes stand to gain the loyalty and trust of tomorrow’s global explorers.