Cloudbeds publishes first-ever study on AI hotel recommendations as generative AI reshapes travel industry
The research comes as AI fundamentally transforms how guests discover and book accommodations. With travelers increasingly turning to AI assistants for personalized recommendations rather than traditional search methods, understanding these algorithms has become critical for hotel visibility and revenue generation.
Adam Harris, CEO and Co-Founder of Cloudbeds, said: "The rules of travel discovery are being rewritten. Travelers no longer scroll through search results; they ask AI and get one answer. This report is the hospitality industry's first in-depth look at how those answers are made. At Cloudbeds, we're sharing these insights to help hoteliers lead in this new era of travel discovery."
Conducted across six global destinations using hundreds of automated queries, the study analyzed 145 consistently top-ranked properties to uncover the key factors driving AI hotel recommendations. The study identifies five strategies for hotels to secure visibility: curating a strategic OTA portfolio, optimizing hotel websites for accuracy and comprehensive detail, prioritizing reputation management across review platforms, expanding digital footprint, and emphasizing unique brand storytelling.
Key findings from the study:
OTAs dominate AI sources: More than half (55.3%) of all sources cited were OTAs, with Tripadvisor, Booking.com and Expedia leading citations.
More than half (55.3%) of all sources cited were OTAs, with Tripadvisor, Booking.com and Expedia leading citations. Branded properties have a clear advantage: 72.4% of AI-recommended hotels were branded or large groups, with these properties showing 4.43 percentage points higher visibility than independents.
72.4% of AI-recommended hotels were branded or large groups, with these properties showing 4.43 percentage points higher visibility than independents. Strong reputation is essential: All recommended properties maintained excellent guest ratings and high review volumes across major platforms, with an average sentiment score of 75 out of 100.
All recommended properties maintained excellent guest ratings and high review volumes across major platforms, with an average sentiment score of 75 out of 100. Digital presence matters: 98% of recommended properties appeared on YouTube, 97% in travel blogs, and 95% on Reddit, indicating AI values broad online visibility.
The study was conducted using AI monitoring tools across ChatGPT, Perplexity, and Gemini – platforms that collectively account for an estimated 98% of AI-driven website traffic. Researchers analyzed citation patterns, sentiment analysis, and digital footprints of consistently top-performing properties to identify the key factors influencing AI recommendations.
The full The Signals Behind Hotel AI Recommendations report is available for free download at: www.cloudbeds.com/hotel-ai-recommendations/
About Cloudbeds
Cloudbeds is hospitality's only intelligent growth engine — a unified platform trusted by the world's most ambitious hoteliers across 150 countries. Built to challenge the limits of outdated tech stacks, Cloudbeds connects operations, revenue, distribution, and guest experience in one powerful, intuitive system. At its core is Signals, hospitality's first AI foundation model, giving hoteliers the power to anticipate demand, run smarter operations, and craft more personal, profitable guest journeys at scale.
Founded in 2012, Cloudbeds has earned top honors from Hotel Tech Report (Top PMS, Hotel Management System, and Channel Manager, 2021–2025), the World Travel Awards (World's Best Hotel PMS Solutions Provider, 2022), and Deloitte's Technology Fast 500 (2024). For more information, visit www.cloudbeds.com.
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