GenAI in tourism: Who wins, who loses?

Abstract

This study examines how generative artificial intelligence (GenAI) adoption announcements affect firm value in the tourism industry, focusing on online travel agencies (OTAs), hotel companies, and major technology firms. Drawing on signaling theory, two-sided market theory, competitive dynamics, and disruption theory, we analyze GenAI-related announcements made between November 2022 and October 2024 using an event study methodology. The findings reveal that market responses vary depending on the source of the announcement and the type of firm affected. While GenAI announcements from OTAs and hotels generate negative spillover effects for other tourism firms, OTAs experience positive responses to their own and hotel announcements. In contrast, announcements from tech firms trigger negative reactions across OTAs and hotels, suggesting concerns about platform dependency and value displacement. These results highlight the strategic complexity of GenAI signaling and its implications for firm positioning in platform-based industries.