Google's AI Search Shift Deals Massive Blow to Hospitality Industry

An analysis by Tank demonstrates Google’s recent shift to AI-powered search features, including AI Overviews and AI Mode, is reshaping how users find information online. This change has led to a notable decrease in organic traffic for several industries, with the hospitality sector being the most affected. The transformation in search dynamics necessitates a reevaluation of traditional SEO strategies to maintain visibility and competitiveness in this new landscape.

Impact of AI Search on Organic Traffic

The introduction of AI search features by Google has significantly altered the landscape of online search. A study conducted using the SEO tool Ahrefs analyzed the impact on 800 companies across 16 industries in the UK, comparing data from before and after the rollout of these AI features. The findings revealed that while organic traffic grew by 26.3% on average before AI search, it slowed dramatically to just 3.7% after the introduction of AI Overviews and AI Mode.

The hospitality sector, in particular, saw a stark decline of -6.7% in organic traffic over the past year, a significant drop from the 47.9% growth it experienced prior to the AI search rollout. This decline underscores the challenges faced by industries heavily reliant on online visibility for customer engagement and revenue.

Industries Most Affected

The hospitality sector has been the most affected overall, seeing a -6.7% decline in monthly organic traffic over the past year, since the rollout of Google’s AI search features, though the hospitality sector was not alone in experiencing a decline in organic traffic. The fashion industry followed with a -3.4% decrease, while the travel and tourism sector saw a -1.6% drop. The finance and manufacturing sectors also faced challenges, with declines of -1.4% and -3.8%, respectively. These industries, which previously enjoyed substantial growth in online visibility, now face the challenge of adapting to AI-driven search dynamics.

Industries Least Affected

Conversely, some sectors have been less affected by the shift to AI search. The IT sector experienced a modest growth of 2.1% in organic traffic, while charity/NFP organizations saw a slight slowdown from 15% to 12.5%. The healthcare sector maintained a growth rate of 10%, albeit down from 13.6% the previous year. Aviation and education sectors also showed resilience, with minimal declines in traffic despite the overall trend.

Changes in Ranking Pages

The shift to AI search has also impacted the ranking of web pages. Before the introduction of AI features, all sectors saw an average growth of 14.1% in ranking pages. However, this changed post-AI rollout, with a decline of -11.1% on average. The hospitality and fashion industries, which initially experienced growth, are now among the most affected, with significant declines in their ranking pages.

Adapting to AI Search

The changing search landscape requires businesses to adapt their strategies to remain visible. Experts suggest focusing on generative engine optimization (GEO), which involves optimizing content for AI search. This includes covering topics comprehensively, answering real user questions, and ensuring content is engaging and trustworthy.

Digital PR and thought leadership can also enhance visibility in AI-generated answers by establishing brand authority. Additionally, technical considerations such as using schema markup and structuring content effectively are crucial for AI systems to understand and feature pages.

Conclusion

The shift to AI-powered search by Google has significantly impacted online visibility across various industries, with the hospitality sector experiencing the most substantial decline. As AI-generated search results become the norm, businesses must adapt their strategies to maintain competitiveness. By focusing on comprehensive content, real user engagement, and technical optimization, companies can navigate the challenges posed by AI search and continue to thrive in the digital landscape.