Google is developing agentic bookings in AI Mode for hotel and flight reservations, Julie Farago, Google's vice president of engineering for travel and local search, told PhocusWire.
To make this a reality, she said Google is working on building out the experience with industry partners such as Booking.com, Expedia, Marriott International, IHG Hotels & Resorts, Choice Hotels International and Wyndham Hotels & Resorts.
Google said specifics regarding booking flow, payments and other details are still being worked out, and it did not provide a timeline for the launch of agentic travel booking.
"We're not going to rush this out the door because we want to make sure that it's a seamless experience and that people have all the control that they need and expect," Farago said.
The news comes days after the company shared an AI shopping update across Google ahead of the holidays. It has already released agentic booking capabilities for experiences such as for restaurant reservations, event tickets and beauty and wellness appointments. Google expanded its offering to more users on Nov. 17, with agentic booking for restaurant reservations available on AI Mode in the U.S.
Google's efforts in agentic payments have been ongoing. The company partnered with PayPal on an agentic commerce solution in October and announced an Agent Payments Protocol in September.
Farago said Google wants to be "super thoughtful" about agentic travel booking, given that flight and hotel bookings tend to be large and infrequent.
In addition to its existing travel partners, Google is in talks with additional companies and anticipates broadening its partner list ahead of the launch. Eventually, it aims to support the entire travel ecosystem to bring users a comprehensive view of options.
"We're committed to partnering with travel companies of every size, so you have all the best options at your fingertips," Farago said in Google's blog post on the announcement.
Google already allows users to search for travel options in AI Mode, but when agentic technology launches, the process is likely to look different.
Based on an abstract mock-up previewing the type of experience Google wants to build, bookings would be carried out directly in AI Mode, with partner selections available to book.
Users will be able to follow up, refine options and complete a booking with their chosen partner. Google plans to give users control over partner choice based on prices and terms; partners won't be selected on the user's behalf. The exact experience is still to be determined.
Google confirmed that partner companies will manage transactions and service bookings made through AI Mode. Google will not serve as a merchant of record.
Additionally, Google is exploring how it can -- with permission and transparently -- incorporate information previously provided by users within the experience.
When asked about advertising as a possibility, Farago said it "usually follows product market fit."
"Our first goal is building something that people actually want to use. Then as people want to use it, we figure out what the monetization path is," she said.
Following Google's announcement, investor concern mounted over a risk of online travel agency disintermediation, according to Jake Fuller, managing director and digital services analyst for BTIG. But Fuller said BTIG found the concern unwarranted.
"We get the market's reaction but see the risk as overstated," Fuller wrote in a note.
Agentic booking and purchasing are on the horizon in travel, and Google is one of many players incorporating these capabilities. OpenAI launched apps in ChatGPT last month with Expedia and Booking.com among its first partners. In the spring, Perplexity partnered with SelfBook to offer native hotel booking.
Source: PhocusWire