How Loyalty, AI, and B2B Are Driving the Future of U.S. Online Travel Agencies

Shifting Gears in U.S. Online Travel Agencies

U.S. online travel agencies (OTAs) are no longer chasing rapid growth at all costs but are instead adopting new strategies to secure long-term success. The focus has steadily moved toward enhancing customer loyalty, expanding business-to-business services, and embracing innovative AI technology to stay competitive in a crowded market.

Loyalty Programs: Keeping Travelers Coming Back

One of the clearest pivots among leading OTAs is the high value placed on loyalty programs. These initiatives are designed not only to retain customers but to reduce ever-increasing marketing costs. For example, Expedia’s One Key loyalty scheme accounts for nearly half of its room bookings across Expedia, Hotels.com, and Vrbo platforms. Similarly, Booking’s Genius program covers a whopping 55% of its hotel stays, with two-thirds of direct consumer bookings happening through its mobile applications.

These programs represent a strategic bet that strengthening consumer bonds will cut through the noise of competing offers and lessen the reliance on costly advertising. Travelers benefit, too, by enjoying perks and tailored options — a win-win that translates well into the taxi and transfer sector by encouraging repeat customers to choose trusted local services for their transport needs.

Expanding B2B Partnerships: A New Wave of Growth

The OTAs’ B2B sector is currently a strong growth engine. Expedia’s B2B revenues jumped 21% in 2024, now forming 30% of its overall income, thanks to partnerships with retail giants such as Walmart and financial firms including Chase Travel. Booking and Hopper have also embedded travel services into wider retail and telecom platforms, blurring the lines between traditional shopping and travel planning.

In practical terms, this expansion means travelers can expect more integrated options when booking multiple services at once — from flights to accommodations, plus transfers or rental cars. This “connected trip” approach complements platforms like LocalsRide.com, which empower users to pick vehicles with exact details on make, model, and user ratings, all in one place.

Table 1: Key OTA Business Areas and Their Impact

Virtual Agents and AI: The Next Frontier

The rise of artificial intelligence is also a game changer. Virtual travel assistants such as Romie (by Expedia), Penny (by Priceline), and Kayak.ai are initial steps toward automating and personalizing the booking process. These AI systems provide travelers with 24/7 support, quick answers, and tailored recommendations, making trip planning feel more intuitive than ever.

Moreover, OTAs are actively collaborating with tech giants like OpenAI and Microsoft to sharpen AI capabilities and eye potential acquisitions in the AI startup space. As these virtual agents become more sophisticated, travelers using taxi and transfer services can expect smarter, real-time recommendations on the best routes, optimal ride options, and timely arrivals.

Dynamic Packaging: Crafting the Connected Trip

The trend toward dynamic packaging is reshaping how travelers combine elements of their trips. The idea is to offer seamless packages that bundle air travel, car rentals, and hotels into a unified booking process. Expedia reached $5.3 billion in such packages in 2024, with projections aiming for $6 billion by 2028. Similarly, Booking’s Connected Trip transactions jumped 35% in early 2025, signaling strong consumer interest.

This trend is particularly significant for services like taxi transfers, as they can be integrated seamlessly within holistic travel packages. Travelers benefit by managing their entire journey in one go, ensuring that local transfer services align perfectly with flight and hotel schedules.

Vacation Rentals and the Airbnb Factor

The vacation rental market poses an evolving challenge and opportunity for OTAs. Vrbo doubles down on pure holiday rentals, while Booking expands its alternative lodging listings beyond 8 million globally. Competing effectively with platforms like Airbnb remains critical for long-term growth.

Why These Trends Matter for Taxi and Transfer Services

As OTAs deepen their integration of loyalty programs, AI, and B2B partnerships, the ripple effect touches local travel services, including taxis and transfers. A smoother, more personalized booking experience at the macro level leads to higher expectations for local transportation—demanding accuracy, convenience, and excellent customer service.

Platforms like LocalsRide.com reflect this evolution by letting customers choose their exact vehicle model, view driver ratings, and access transparent pricing before booking. This level of clarity and control aligns perfectly with the OTA trends of putting the consumer first, creating an overall travel journey that’s more connected and stress-free.

Insights at a Glance

• Customer loyalty helps OTAs lower marketing costs and fosters repeat business.
• B2B partnerships open doors to embedding travel in retail and finance platforms.
• AI-powered virtual agents enable personalized, efficient bookings.
• Dynamic packaging streamlines complex travel arrangements, including transfers.
• Vacation rental listings continue to grow, signaling shifts in traveler preferences.

While reviews and market trends offer valuable insights, nothing beats first-hand experience. On LocalsRide, travelers can hire cars with professional drivers from verified providers at competitive prices. This freedom to choose from a diverse fleet with transparent fares and convenient booking options empowers you to travel smartly without breaking the bank or facing surprises. Get the best offers LocalsRide.com.

Looking Ahead: What This Means for Travelers and the Industry

Although these OTA developments mainly affect U.S. and global travel markets, their influence trickles down to local transport services worldwide. Enhanced loyalty schemes, intelligent AI helpers, and integrated booking solutions are gradually reshaping how travelers plan their entire trip—from the flight to the final taxi ride. LocalsRide stays on top of these changes, aiming to provide travelers safe, reliable transfers at exact prices, wherever their destination may be. Start planning your next adventure and secure your worldwide transfer with LocalsRide.

Sintesi

In the ever-competitive world of online travel, U.S. OTAs are strategically shifting to prioritizing loyalty programs, business collaborations, and AI innovations. These developments not only help OTAs optimize revenues and deepen customer connections but also enhance the entire travel experience, including ground transportation. Services like taxi and private transfers are benefiting from this shift by offering transparent, personalized options that travelers can book easily through platforms such as LocalsRide.com.

With exact fares, comprehensive vehicle choices, and trustworthy driver ratings, the integration of these trends is making travel smoother from airport pickups to city transfers. LocalsRide.com continues to support these advances by providing clear, affordable options worldwide, making your journey seamless from booking to arrival.