Industry veterans from Google Travel and TripAdvisor have joined forces to launch DirectBooker, an innovative AI-powered startup designed to help hotels bypass traditional online travel agencies (OTAs). The venture, backed by former Tripadvisor CEO Steve Kaufer and ex-Google Travel head Richard Holden, plans to feed hotel listings directly into AI tools like ChatGPT and Gemini. By establishing a direct pipeline between hotels and large language models (LLMs), DirectBooker aims to transform the way travelers discover and book accommodations.

The move potentially threatens the long-established dominance of major OTAs, such as Booking.com and Expedia, in the increasingly AI-driven travel market. The startup is led by Sanjay Vakil, who previously held leadership roles at both Google Travel and TripAdvisor, providing him with unique insight into the travel technology ecosystem from multiple perspectives.

Changing The Economics Of Hotel Bookings

DirectBooker’s core proposition is to help hotels secure more direct bookings through AI platforms. This offers travelers better rates while allowing hotels to avoid the hefty commission fees typically charged by OTAs. “The default behavior is going to be for the OTAs to win again,” said Vakil. “And I would like to head off that outcome. But it’s going to take more than three people to do that, so we’re looking to grow a little bit.”

As AI tools become increasingly popular for planning vacations, DirectBooker is betting that access to real-time hotel data could be the missing link in transforming how people book travel. While current AI systems excel at generating travel inspiration and itineraries, they often lack direct booking capabilities, creating an opportunity for new intermediaries in the travel tech space.

The startup’s technology leverages the Model Context Protocol (MCP), which enables more effective data delivery to large language models. This approach aims to provide richer, more tailored hotel information during AI-driven travel searches, encouraging direct bookings rather than referrals to OTAs.

Currently, DirectBooker remains in pre-product phase with $2 million in pre-seed funding. Although the company hasn’t yet secured hotel partnerships, the involvement of travel industry heavyweights lends credibility to its vision.