Bank of America's 2026 outlook identifies five key themes for the online travel sector. At the forefront is agentic AI, poised to reshape trip planning and booking. This technology could replace traditional search models. Established OTAs must leverage supply, loyalty programs, and brand strength to retain direct traffic as competition evolves towards "Search 2.0".

Cyclical tailwinds are expected in the first half of 2026, with easier U.S. travel demand comparisons. The FIFA World Cup is projected to add about 1% to full-year bookings, mainly in lodging. Competition is also intensifying as major platforms expand offerings across accommodations, experiences, and personalized services. Additionally, B2B travel remains a bright spot, growing faster than consumer bookings.

BofA anticipates a favorable marketing spend environment, with OTAs shifting investments toward merchandising and social channels. The firm maintains Buy ratings on Booking and Expedia and a Neutral rating on Airbnb, citing AI progress and margin opportunities. Investors should watch how these companies adapt to AI-driven changes and evolving customer preferences.

Looking ahead, the integration of AI in travel will likely accelerate. Companies that can effectively use AI to personalize experiences and streamline booking processes will gain a competitive edge. The expansion of services and the growth of B2B bookings suggest a dynamic and evolving industry, making these companies a key area to watch for investors.