Perplexity AI introduces new hotel search agent

AI search engine Perplexity has just announced a new feature that will allow users to book hotels directly through Perplexity's interface. The company is launching "Answer Modes" with dedicated verticals for Maps, Shopping, and Travel – the latter in collaboration with Tripadvisor and Selfbook to provide reviews, travel information and booking infrastructure.

Perplexity AI will include a new Hotels tab in search results. 

Though the details and exact mechanism are not yet clear, searchers will be able to book hotels directly from Perplexity results. 

AI Agents in search

This announcement reflects the broader momentum in the AI landscape, where the development and adoption of 'agents' is accelerating. Unlike traditional AI systems that simply provide information, AI agents (also known as ‘agentic AI’) can perform complex tasks on behalf of users, making decisions and taking actions to achieve a goal.

Perplexity isn't alone in exploring this space. Other companies are also developing agentic tools that can search for products, compare options, and complete purchases on behalf of users, with OpenAI’s Operator being probably the most well-known example to date.

Aravind Srinivas, CEO of Perplexity, highlighted this shift in his announcement:

"We are introducing Answer Modes in Perplexity to help people get things done, not just search. With Answer Modes, people can easily access reliable information and act on it."

He further explained the specific travel capabilities:

"The Travel mode will help users discover places to visit, read Tripadvisor reviews, plan trips, and book hotels directly with partners like Selfbook."

Srinivas also emphasized the broader vision behind these developments:

"At Perplexity, we believe in products that provide value directly through outcomes, not just through engagement."

Who are the players?

If you haven't heard of Perplexity yet, you're not alone. Launched in 2022, it's an AI-powered search engine that provides direct, conversational answers to queries instead of just lists of links (though a list of sources is also available). The platform has been growing rapidly and positions itself as a more direct, informative alternative to traditional search engines.

Selfbook, founded in 2021, offers a streamlined hotel booking solution that enables one-click reservations with multiple payment options, including digital wallets and "buy now, pay later" services.

As for Tripadvisor – well, you know them. Their collection of reviews and travel content will power much of the information side of Perplexity's travel vertical.

How might this change travel search?

AI-powered search platforms like Perplexity, particularly as they develop more agentic capabilities, might be the start of a transformation in how travelers find and book hotels. Beyond simple keyword matching, these systems can understand complex, nuanced queries combining multiple preferences.

A traveler might ask for "boutique hotels near Boston's convention center with good workspaces and close to restaurants" - and receive tailored results that consider all these factors. AI-powered platforms can also extract insights from unstructured review content, identifying subtle property attributes not formally categorized in databases.

Over time, as these systems observe user behavior, they could also develop increasingly personalized recommendations based on your previous choices and preferences.

All that said, Perplexity appears to be maintaining direct links to hotel websites alongside the new booking options, perhaps preserving direct booking opportunities for hotels. For now there's still uncertainty around exactly how the new features will work in practice, and how hotels could optimize their presence.

Google's "Book on Google" all over again?

This approach bears some resemblance to Google's now-deprecated "Book on Google" feature, which allowed users to complete hotel bookings without leaving Google's interface. That feature was discontinued in May 2022, with Google refocusing on directing users to hotel and OTA websites.

The key difference? Perplexity is approaching this as part of a broader AI agent strategy rather than as an extension of an existing search (and advertising) ecosystem. Whether this different approach will lead to wider adoption remains to be seen, but Perplexity’s measure of ‘success’ is also likely to be different.

Looking ahead

While it's too early to predict how significant this partnership will become, it offers a glimpse into how AI agents might influence hotel discovery and booking in the future.

What we can say is that despite the hype and amazing advances, AI search has yet to take over the world. Some surveys have shown that only around 1% of all people searching on the web used Perplexity in 2024, and they certainly weren’t all looking for hotels! 

For now, we’d suggest:

• Ensuring your property information and imagery are up-to-date on Tripadvisor
• Monitoring any booking patterns that might emerge from this channel
• Staying informed about how direct booking links are presented alongside other options

The Perplexity-Selfbook partnership might not revolutionize hotel bookings overnight, but it represents an interesting development. Whether it becomes a major booking channel or just another interesting experiment, it's worth keeping on your radar as the landscape of travel search continues to evolve.

In the meantime it’s clear that a more traditional marketing mix will remain critical to hotels’ direct booking strategy for the foreseeable future. To talk about how Triptease can help you win more valuable guests and increase direct bookings, get in touch with one of our experts today.