Google is introducing paid offers into AI responses, with IHG among the first hotel partners
Google gradually turning AI responses into a new advertising channel. Following traditional ads above and below search results, sponsored content is now entering the very conversation where the traveller explores a destination, compares hotels and makes a booking decision.
During the presentation of Alphabet's second-quarter results for 2026, Google's Chief Business Officer Philipp Schindler confirmed that IHG Hotels & Resorts soon display special offers within AI-supported travel planning. This involves the Direct Offers format, which enables brands to offer a benefit to the user at the moment they are close to purchasing.
The advert is no longer next to the reply
The change is important because the commercial message no longer appears only alongside search results. Direct Offers can be included in the AI response, that is, in the part of the user experience where hotel choices are shaped.
Google is also testing Highlighted Answers in parallel. That format within the list of recommendations displays clearly labelled sponsored links. The company states that the tests are recording initial positive user reactions, but details regarding pricing, entry criteria and the bidding model have not yet been published.
Large hotel chains are gaining the advantage
IHG's inclusion shows that the new distribution position in the initial phase is developing through direct partnerships. An independent hotel cannot currently simply open Google Ads, set a budget and secure the same visibility.
This gives large chains an advantage. They have larger quantities of data, developed loyalty programmes and the technological infrastructure needed for personalised offers. At the same time, smaller hotels could once again become dependent on chains, OTA platforms or technology partners that have access to the new channel.
AI Max is expanding the monetisation space
The broader picture is provided by AI Max, which has left beta and is used by more than 500,000 advertisers. According to Google's data, AI Max and Performance Max deliver an average of 15 percent more conversions or conversion value at a similar return on ad spend. The company also claims that the system unlocks billions of more complex searches that were previously impossible to monetise effectively.
For hoteliers, this means that optimisation for organic AI recommendation will no longer be enough. Visibility will increasingly depend on a combination of quality data, direct offers, advertising and access to Google's new commercial formats.
