Indonesian Tourists Rely on OTAs and AI to Find the Best Hotel Deals

Published on November 23, 2025

With the close of the year and the peak of the holiday rush approaching, another change is being seen in the travel booking of Indonesian holidaymakers. Online travel agencies and artificial intelligence tools for booking accommodation have become and are extending their lead over the competition for hotel reservations, including in Indonesia. The latest data from SiteMinder’s Changing Traveller Report 2026 predicts that for the first time, OTAs will replace search engines for travellers and will become the dominant method for travellers to seek and book hotel reservations.

These changes also reflect the surge in modernisation in travel booking and travel planning. Like other tourists in the region, Indonesian travellers have also begun to modernise travel accommodation booking to smart and speedy booking activities. The extended reliance on OTAs and booking AI manifests the demand for travel experiences that are more flexible and personalised.

The Rise of OTAs in Hotel Reservations. While Online Travel Agents (OTAs) have always provided services to collect and shop for flights and accommodations, they have also recently begun to dominate the hotel booking segment. Apps such as Traveloka, Tiket.com, and Agoda in Indonesia have increased use and prominence, all of which accomplish the same functions. During the peak of travel, they all provide a fast and easy experience for travellers. Users have the convenience of sitting in one place, whether that be at home on a computer or travelling on a mobile device.

As demand for OTAs escalated, these travel booking systems increased their functionality to include services such as instant booking confirmations, improved flexible cancellation policies, and tailored loyalty plans that include exclusive discounts and benefits for valuable traveling customers. This benefits the customer from a time perspective which fueled them to prioritise OTAs as their preferred lodging booking platform.

The Role of AI and Personalisation in Travel Planning

AI is helping Indonesian travelers book hotels more efficiently. AI is being used in several OTAs for customizing the travel experience by providing recommendations based on past bookings, preferences, and even browsing behavior. For example, AI could recommend hotels at your favorite destination and within your ideal budget that offer amenities you are looking for but may not be available in the hotels you are considering.

AI is also being used for customer service and support in the form of chatbots and virtual assistants. These AI programs provide real-time responses to queries, make available accommodation recommendations, and even assist in the booking. Streamlining the booking process to help Indonesian travellers and providing an improved customer experience will be, in part, a function of AI.

How OTAs and AI booking engines impact traditional hotel booking

The rise of AI and OTAs has begun to affect traditional hotel booking methods. Some tourists from Indonesia still book via hotel websites or use travel agents to book, but due to the limited options and variety, they’re less likely to book this way. According to the SiteMinder Report, OTAs will likely to overtake search engines as the number one way to book hotels by 2026.

The impact on the hotel industry is significant. Hoteliers will need to adjust their marketing and distribution strategies. There is a clear shift to marketing and distributing through OTAs. Hotels recognise the exposure and market size they control. To address the booking convenience, many hotels now offer exclusive or discounted rates to use OTAs.

The Increased Usage of Mobile Technology for Hotel Bookings

The integration of mobile technology has made the use of OTAs for making hotel reservations in Indonesia even greater. Tourists in Indonesia use mobile technology for travel reservations while on the run. OTAs such as Traveloka and Agoda facilitate mobile hotel reservations, flights and car rentals. Traveloka and Agoda both facilitate the mobile technology users’ ability to manage reservations and check into hotels with the use of their smartphones.

The mobile-first strategy has defined the users travel experience and convenience as the core of the system. Indonesian users can also make travel bookings at the last minute without any inconveniences.

The Development of Hotel Marketing

The OTAs and Artificial Intelligence travellers use has being making hotel bookings for Indonesian travellers, changing the hotel marketing strategy so they can compete for their rentals as well. Increased investments are being made into streamlining digital marketing, mobile website optimisation and improved digital marketing and collaborations with OTAs. Bookings of their facilities can be digitally marketed and then targeted to be overpriced, so hotels can increase and maximize their profits when travellers are most desperate for accommodation.

In addition, hotels are concentrating on creating customer loyalty by providing exclusive discounts and benefits to clients who book via OTAs or register in loyalty programs. The objective of these loyalty initiatives is to deliver guests additional value, increasing the possibility of return visits or selecting the same hotel chain for their future lodging.

The Coming of Hotel Bookings in Indonesia

The coming of hotel bookings in Indonesia is more and more digital. OTAs and artificial intellegence are constantly improving how travellers search and reserve their accommodations. The online and mobile booking trend is continuing to rise, which is an improvement for Indonesian travellers. They can expect personalised travel offers. These offers will provide more efficent and cheaper travel when compared to other systems. The improvement of travel booking systems is allowing travel to become more affordable. The ability to compare costs, obtain current data and information as well as tailored recommendations, are making travel plans more possible than ever before.

The upcoming advancement of technology is expected to assist with more changes in the travel industry. From the integration of AI and technology, booking hotels in Indonesia will become more advanced with ease of convenience. With the holidays coming up, Indonesia will have travelers taking the most out of these technology advancements, making more smart and intelligent decisions when booking hotels.