Booking Holdings Funds Subscription AI App Lola
Kayak founders Steve Hafner and Paul English launch Lola, a subscription-based AI booking agent passing commissions back to guests.
The short answer
Booking Holdings has launched Lola, an AI travel assistant developed by Kayak co-founders Steve Hafner and Paul English. The app uses monthly memberships to offer discounted hotel rates by rebating commissions back to travelers.
“Lola learns what each member likes and searches across hotels, restaurants, events, and experiences to find the options worth their time, with member rates and perks attached.”
The short version
- Booking Holdings owns Lola, an AI assistant led by Kayak co-founders Steve Hafner and Paul English.
- Lola replaces distributor commission retention with $5 and $25 monthly subscription plans on 12-month commitments.
- Ten Group supports the app's chat concierge desk and supplies preferred perks across roughly 5,500 to 6,000 properties.
Booking Holdings has launched Lola, an artificial intelligence booking assistant led by Kayak co-founders Steve Hafner and Paul English that replaces traditional commission markups with monthly subscriptions [[1], [2]]. Wholly owned by Booking Holdings, the standalone app lets travelers plan and book rooms, dining, and live events within a single chat conversation [[1], [2]].
What is Lola and who controls it?
Lola is an artificial intelligence travel agent wholly owned by Booking Holdings and run by Kayak co-founders Steve Hafner and Paul English [[1], [2]]. Skift reported that Hafner reports directly to Booking Holdings CEO Glenn Fogel, giving the startup venture direct corporate backing while operating on a separate technology stack [1]. The business employs about 20 people based across New York and Cambridge, Massachusetts, following five months of initial development [1]. Boutique Hotel News noted that the platform is headquartered in New York City [2].
Hafner holds a mandate to build the service from scratch, pairing the operating freedom of an early-stage startup with Booking Holdings' capital, inventory, and partner access [1]. According to Skift, Hafner's stated goal is for Lola to become as large a brand as Booking.com [1].
How does the subscription pricing model work?
Lola eliminates standard commission retention by charging consumer subscriptions across three distinct tiers [[1], [2]]. The base membership is free to all users, while paid plans require 12-month commitments: The Plus tier costs $5 per month, and the VIP tier costs $25 per month [[1], [2]].
Instead of pocketing hotel distribution commissions, Lola rebates those amounts to paying members in the form of lower room prices [1]. In one four-night Miami Beach stay detailed by Skift, a VIP member paid $783 through Lola, compared to $997 on both Booking.com and Expedia [1]. Hafner expects roughly 90% of active members to remain on the free tier [1].
| Membership Tier | Monthly Price | Commitment Term | Hotel Pricing Structure | Included Perks |
|---|---|---|---|---|
| Free | $0 | None | Standard search results across multiple travel sites | Chat recommendations, real-time availability |
| Plus | $5 | 12 months | Preferred discounted member rates via rebated commission | Priority dining, concierge access, airport service discounts |
| VIP | $25 | 12 months | Maximum preferred discounted member rates via rebated commission | Metered concierge requests, enhanced hotel perks, priority dining |
Where does Lola source its hotel inventory and perks?
Lola aggregates room supply from internal Booking Holdings channels as well as outside travel partners [[1], [2]]. The app pulls inventory from Booking.com, Priceline, Agoda, and outside supplier Nuitée [[1], [2]]. In addition, boutique benefits are provided through concierge partner Ten Group [[1], [2]].
Ten Group maintains enhanced-benefit agreements covering roughly 5,500 to 6,000 hotels [1]. These property agreements give paid Lola members access to direct perks such as room upgrades and late checkout [1]. Ten Group also supplies the human concierge staff answering chat requests, which are metered based on whether the guest subscribes to the Plus or VIP tier [1].
What dining and entertainment suppliers are integrated?
Lola aggregates dining, transit, and entertainment options into the booking stream so guests can arrange entire itineraries inside one chat window [[1], [2]]. Boutique Hotel News reported that the platform offers preferred pricing and access to more than 200,000 experiences globally, spanning attractions, museums, concerts, and sporting events [2].
Launch partners beyond hotel providers include OpenTable, Kayak, FareHarbor, ResX, SeatGeek, GetYourGuide, BLADE, and Aero [[1], [2]]. Skift reported that Lola is also in discussions to add inventory from Ticketmaster/Live Nation, AEG, SevenRooms, and Resy [1].
What does Lola mean for hotel revenue managers?
Lola creates an alternative distribution route where rooms are sold at net-equivalent rates directly inside an automated messaging environment [1]. Because Lola surrenders the booking commission to the consumer rather than retaining standard distribution margins, displayed retail rates for subscribers can undercut established public rates on traditional online travel agencies [1].
Hotels participating in Ten Group's preferred programs gain exposure to higher-spending VIP subscribers receiving automated recommendations based on traveler taste [[1], [2]]. "Lola learns what each member likes and searches across hotels, restaurants, events, and experiences to find the options worth their time, with member rates and perks attached," English told Boutique Hotel News [2].
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]Booking Holdings Launches Lola AI to Challenge Traditional OTAs— Skift
- [2]KAYAK Founders Launch Booking-Backed AI Travel App Lola— Boutique Hotel News
Frequently asked
+What is Lola?
Lola is an AI booking assistant created by Kayak co-founders Steve Hafner and Paul English and wholly owned by Booking Holdings. It plans and books accommodations, restaurant reservations, and ticketed activities inside an interactive chat interface.
+How does Lola make money without keeping travel commissions?
Lola relies on a subscription revenue model instead of standard distribution commissions. The service offers a free tier alongside two annual-commitment paid plans: The Plus tier at $5 per month and the VIP tier at $25 per month.
+How does Lola reduce room rates for consumers?
Lola passes the distribution commission it would normally take directly back to paid members as rate discounts. In a test stay in Miami Beach, a VIP subscriber secured a four-night room for $783 compared to $997 on traditional booking sites.
+Which hotel suppliers provide inventory to Lola?
Lola sources properties through Booking Holdings brands including Booking.com, Priceline, and Agoda, alongside external room supplier Nuitée. Concierge partner Ten Group provides special amenities across 5,500 to 6,000 hotels.
+What experiences and dining platforms are integrated into Lola?
Lola features more than 200,000 activities and experiences through partners including SeatGeek, GetYourGuide, and FareHarbor, luxury transit through BLADE and Aero, and restaurant reservations via OpenTable and ResX.
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