The Impact of Artificial Intelligence-Driven Chatbots on Customer Engagement and Booking Intentions in Online Travel Agencies within the Global Tourism Market

Abstract: Artificial Intelligence (AI) and conversational technologies are revolutionizing the tourism industry's digital interactions—shaping the way we connect with travelers globally.AI and conversational technologies have dramatically changed how the global tourism industry reaches travelers digitally. One of these innovations is the use of AI-powered chatbots by Online Travel Agencies (OTAs) to transform the way consumers engage with travel platforms, turning them into dynamic, personalized, and conversational spaces for booking. This research explores the role of AI-powered conversational agents in improving customer engagement and booking conversion rates within the highly competitive tourism industry worldwide. This research highlights the cognitive and psychological factors that contribute to user trust and satisfaction, such as the ability to provide 24/7 availability, custom itineraries, and smooth payment processing, in the case of generative and hybrid chatbots. Drawing from the Stimulus-Organism-Response (S-O-R) paradigm and the Technology Acceptance Model (TAM), the paper proposes that real-time algorithmic support to address travel anxiety and perceived value of the travel experience. Furthermore, it faces industry challenges such as AI hallucinations, data privacy, and the delicate balance between automation and the human touch. The insights provide actionable strategies for online travel agencies (OTAs) and hospitality marketers looking to adopt conversational AI, improve user journeys, and secure a lasting competitive advantage in the digital realm.