Short-term rental sector bets on AI search to drive direct bookings

The short-term rental (STR) sector is on the cusp of a big shift in how people search for stays. But collectively the key players are scratching their heads.

The problem is, no one knows to what extent artificial intelligence (AI)-powered search and (eventually) distribution will disrupt traditional booking patterns, or more importantly, which large language models (LLMs) will ultimately dominate.

For now, LLMs such as ChatGPT and Claude are jostling for position as they test the consumer appetite for advertising. Google is also experimenting with advertising in AI mode. This early stage of development could pave the way for startups to step in with products that support rental managers.

Early signals

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