Late last year I wrote a series of articles outlining how destinations can not only stay relevant in the digitised travel environment but effectively position their region against the increasing dominance of OTAs. The objective being to re-capture their region’s digital sovereignty and stem the outflow of booking revenue from their economy to offshore tax havens.

In the last six months we’ve witnessed yet another challenge emerging, associated with travellers’ use of AI generated search. However, again every threat presents and opportunity.

Let me explain.

Destination websites are entering a new era. As I explained in my previous three blogs travellers are increasingly planning trips by asking AI-powered tools questions like “What’s the best long weekend itinerary in the Hunter?” or “Family-friendly things to do in Broome in July?” Instead of ten blue links, they get a single, confident answer with a shortlist of accommodation and experiences to book. That shift is GEO (Generative Engine Optimisation) in action. The content is extracted, summarised and recommended by generative systems.

For DMOs, GEO is both a threat and an opportunity. The threat is obvious, if AI assistants and Google-style summaries source information from OTAs and big third -party publishers, your destination story and your local tourism operators will be crowded out. But the opportunity is bigger. DMOs can and should become the most trusted “source of truth” for destination information, and the best place to convert inspiration into direct bookings.

Why are OTAs currently winning in AI-driven discovery?

OTAs have an advantage. They have thousands of bookable listings, consistent product data (rates, availability, inclusions, location), and strong technical signals that machines can interpret. When an AI engine needs to answer, “Where should I stay?” or “What tour should I book?” OTAs look, to the AI engines, like the easiest, most complete source.

If your DMO site is mainly or exclusively inspiration (beautiful images, articles and PDFs) but lacks ‘live’ bookable local products, generative engines may still use your content for “where to stay” and “things to do,” but the transaction will happen elsewhere taking revenue margin, customer data and supplier relationships with it.

What changes can be made for DMO websites to meet this challenge?

In a GEO world, destination sites need to do three jobs at once:

  1. Be the authoritative destination guide (accurate, current, local nuance).
  2. Be machine-readable (clear facts, structured content, trustworthy signals).
  3. Deliver an instant, direct booking pathway for local operators.

Achieving these objectives is not that hard for the DMO. It simply requires the DMO to:

  1. Add bookable product inventory. Integrate local tours, experiences and accommodation with live availability and rates where possible. It doesn’t have to be 100% of suppliers, but enough to create a clear booking pathway. If full industry coverage with bookability isn’t feasible right now, at least provide consistent product pages with clear “Book now” button (ideally with direct payment) to those operators with ecommerce capability. Don’t just link them off to OTAs or other third parties.
  2. Build “answer pages” for itinerary questions. Create pages titled like real consumer prompts: “3-day itinerary in Hobart”, “Best time to visit”, “How to get around without a car”, “Accessible experiences”, “Rainy-day options”. These are highly “extractable” for AI and incredibly useful for visitors.
  3. Publish a destination facts hub. Put key information in text (not only images): transport, seasonal conditions, permits, safety, event dates, opening hours, accessibility, and local travel tips.
  4. Prove trust. Make your DMO identity obvious: official contact details, update dates, editorial policy, and partnerships with collaborating operators.
  5. Structure your pages. Use headings that match questions, include FAQs, and implement schema (Organization/LocalBusiness, FAQ, Event, Product/Offer) so machines understand your content and listings.

If you’re looking for a fast and practical way to deliver bookable local product on your destination website without building a marketplace from scratch, there is an Australian option available now: Tourism Exchange Australia (TXA). TXA is Australia’s national, “all tourism products” booking exchange, designed to connect distributors (including DMOs) to suppliers’ inventory via a direct connection to suppliers’ booking systems so your site can show live rates and availability and move visitors from inspiration to booking inside a consistent destination experience.

This type of “exchange / marketplace layer” directly addresses the DMO problem GEO is amplifying when travellers leave your site right at the moment of decision, OTAs tend to capture the booking, margin, and customer relationship. TXA’s exchange layer can feed supplier content plus live rates and availability and points of interest into your destination search, support a consistent “search and convert” flow, enable multi‑product checkout, and even route direct payment to suppliers at time of booking while suppliers keep using their own booking systems helping DMOs reduce leakage and keep more value, data and operator relationships local.

The goal isn’t to “beat” OTAs. It’s to ensure the destination’s official voice and local operators remain visible in AI answers and that your website can capture value through bookable products and high-intent planning content.