The Crisis for Small and Medium-Sized Hotels: Booking's CEO Criticizes Google Gemini and ChatGPT for 'Unfair Practices'

marsbitPublished on 2026-03-26Last updated on 2026-03-26

Abstract

The CEO of Booking Holdings, Glenn Fogel, has issued a strong warning that Google's Gemini and OpenAI's ChatGPT are using their dominant market positions to push small and medium-sized hotels to the brink. Fogel argues that while traditional search allowed users to browse multiple options, AI assistants now often provide only one to three algorithmically filtered "best" recommendations in response to travel queries. This leaves independent hotels, which lack big data resources and dedicated AI optimization teams, effectively invisible in search results. Although Fogel has previously criticized EU regulations like the Digital Markets Act (DMA), he now supports antitrust scrutiny of AI-generated search results. He advocates for audits to ensure that large AI platforms do not unfairly prioritize their own services or those of major corporations that pay high fees. In response to this competitive threat, Booking is investing an additional $700 million by 2026 to develop in-house AI marketing tools and a "Connected Trip" program. The initiative aims to help smaller hotels structure their data to improve visibility across AI platforms, while emphasizing that complex customer service—such as handling flight delays or cancellations—remains a core strength of Booking’s business.

In 2026, as AI search reshapes traffic distribution, Glenn Fogel, CEO of global online travel giant Booking Holdings, issued a stern warning: Google's Gemini and OpenAI's ChatGPT are leveraging their technological dominance to push small and medium-sized hotels to the brink.

Fogel pointed out that while traditional search models also involve competition for visibility, users could at least see more options by scrolling through pages. However, today's AI assistants are entirely different:

  • Singular Recommendations: When travelers ask an AI, "Help me find a cost-effective hotel in downtown Munich," the AI often provides only 1-3 algorithmically filtered "optimal" solutions.

  • Invisibility of Independent Hotels: Small and medium-sized hotels lacking big data support and dedicated AI optimization teams are being completely erased from search results by AI. Fogel bluntly stated that this "highly filtered" recommendation mechanism deprives small businesses of the opportunity to be discovered in a fair environment.

Interestingly, Fogel, who had previously criticized the EU's Digital Markets Act (DMA) as "foolish regulation," is now siding with regulators.

  • Welcoming Audits: He expressed strong support for the EU's antitrust review of AI search results generated by Google Gemini. He believes it is essential to ensure that large AI platforms do not prioritize their own booking services or direct traffic only to large conglomerates that pay high "protection fees."

  • Alliance of Interests: Although Booking itself is also classified as a "gatekeeper" company, in the face of cross-industry pressure from "super platforms" like Google, Booking has chosen to ally with regulators to protect the supplier ecosystem on its platform.

To avoid being completely "disintermediated" by AI platforms, Booking announced an additional investment of $700 million in 2026 for in-house AI marketing tools and the "Connected Trip" plan:

This initiative aims to help small and medium-sized hotels without technical capabilities undergo data structuring transformations, making them more easily recognizable by various AI agents. Fogel firmly believes that while AI can handle bookings, complex "human-machine interaction" services such as managing flight delays and handling hotel cancellations and changes remain Booking's moat.

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Related Questions

QWhat is the main concern raised by Booking Holdings CEO Glenn Fogel regarding AI like Gemini and ChatGPT?

AGlenn Fogel warns that AI platforms like Google's Gemini and OpenAI's ChatGPT are using their technological dominance to push small and medium-sized hotels to the brink by making them invisible in search results, as AI tends to provide only 1-3 algorithmically filtered 'optimal' solutions, eliminating fair discovery opportunities for these businesses.

QHow does AI search differ from traditional search in terms of presenting options to users?

ATraditional search allows users to see more choices by scrolling through pages, while AI assistants often provide only 1-3 highly filtered recommendations, reducing visibility for smaller options like independent hotels that lack big data support or AI optimization teams.

QWhy does Glenn Fogel support EU antitrust scrutiny of AI search results from platforms like Gemini?

AFogel supports EU antitrust scrutiny to ensure large AI platforms do not prioritize their own booking services or only direct traffic to large corporations that high fees, aiming to protect fair competition and the supplier ecosystem on platforms like Booking.

QWhat action is Booking taking to counter the threat of AI platforms disintermediating them?

ABooking is investing an additional $700 million in 2026 to develop in-house AI marketing tools and a 'Connected Trip' plan, helping small and medium-sized hotels with data structuring to make them more recognizable by AI agents, while maintaining complex human-machine interaction services as their competitive advantage.

QWhat does Glenn Fogel believe remains Booking's competitive edge despite AI's ability to handle bookings?

AFogel believes that handling complex human-machine interactions, such as managing flight delays and hotel cancellations or changes, remains Booking's moat, as these services require nuanced support that AI's current capabilities may not fully replicate.

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