Deployment record
In the tracker →- Organisation
- Hilton
- System
- AI consumer agents
- Function
- bookings
- 01Hilton CEO Chris Nassetta stated that AI consumer agents currently represent an insignificant source of bookings, comparing their early stage to the beginnings of the internet.
- 02Hilton collaborates with various AI platforms and controls approximately 25% of quality hotel inventory in the U.S., which enhances its negotiating position.
- 03The company has appointed Jeff Moore as the new CTO to prioritize technology efficiency, distribution improvements, and enhancing guest experiences.
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- 04Hilton's RISE program has reduced loyalty costs for franchisees, with plans for a second phase, RISE 2.0, aimed at further efficiencies in 2027.
- 05Hilton reported a 5.8% growth in system-wide comparable RevPAR for Q3 2026, with adjusted EBITDA of $1.058 billion, reflecting an 8.4% year-over-year increase.
Hilton
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Hilton CEO Chris Nassetta said on the company's Q3 2026 earnings call on October 27, 2026 that AI consumer agents are not yet a meaningful source of bookings.
Asked by Barclays analyst Brandt Montour whether agents could shift share from online travel agencies to Hilton, Nassetta said the channel is still small in terms of traffic and booking dollars, describing it as "early and it is insignificant, to be honest."
He also said he views it as the future of distribution, comparing the current stage to the early days of the internet. Consumers, he said, will gravitate toward tools that are fast, easy, and effective.
Hilton's Position With AI Platforms
Nassetta said Hilton works with essentially every AI platform and has products available across them. He pointed to the company's scale as an advantage, estimating that Hilton controls about 25% of quality hotel inventory in the U.S., which he said gives it a strong seat at the table in those conversations.
He also credited Hilton's modernized tech stack, saying counterparties have found it makes direct connectivity easier and faster to set up.
Nassetta said he expects online travel agencies to remain important for a segment of Hilton's business. But he said AI agents could lead to much more direct business at a lower distribution cost.
Those savings, he said, would flow to hotel owners, which he called the most important element, making them more profitable and more willing to build.
Technology Priorities and Owner Costs
Responding to an HSBC analyst on the appointment of a new chief technology officer, Nassetta said the CTO had just joined and reports directly to him, giving technology more executive-level visibility.
Hilton named Jeff Moore, previously VP of Software Engineering at Uber, as CTO earlier in October, with his start date set for October 26. Michael Langer remains chief information officer.
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Nassetta outlined three technology priorities. The first is system efficiency, using AI, technology, and process changes to reduce corporate costs and the cost of running the system for owners, which he said accounts for most of Hilton's cost base.
The second is distribution, making agent-driven booking easier and building more direct relationships at lower cost.
The third is guest experience, connecting physical and digital touchpoints to personalize offerings at mass scale. He described current testing in that area as a small first step.
On owner costs, Morgan Stanley analyst Stephen Grambling asked how Hilton is managing franchisee relationships. Nassetta said owners have had a difficult stretch, with high cost inflation and weak returns in the years after the pandemic.
He pointed to the RISE program, launched in June 2025, which lowered loyalty costs by 30 basis points for all owners, with an additional 50 basis points for hotels that pass a customer satisfaction quality gate. About half the system qualifies.
Hilton plans a second phase, RISE 2.0, in the first quarter of 2027, reviewing system-side loyalty costs and looking for further efficiencies. Nassetta said the focus areas include technology, AI, process changes, and Hilton's scale. He did not give specifics.
AI Infrastructure and Travel Demand
Nassetta also tied Hilton's demand outlook to the AI investment cycle. He said non-residential fixed investment has grown nearly twice as fast as its 20-year average for six quarters, and that hotel demand closely tracks it.
He cited AI infrastructure, data centers, energy, bridges, and highways as projects that require business travel, often by middle-class workers, and said he expects that investment-driven demand to continue for at least a couple of years.
Hilton reported Q3 2026 system-wide comparable RevPAR growth of 5.8% on a currency-neutral basis, with U.S. RevPAR up 7%. Adjusted EBITDA was $1.058 billion, up 8.4% year over year, and adjusted diluted EPS was $2.45, compared with $2.11 a year earlier.
Net unit growth was 6.0%, with about 27,000 rooms opened, the largest organic opening quarter in the company's history.
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