Here are few of the stories that caught our attention over the week with some of our takeaways.
AHLA’s 2025 State of the Industry: Recovery Challenges and Shifting Traveller Preferences: The American Hotel & Lodging Association’s 2025 State of the Industry Report presents a mixed but revealing picture of the hospitality landscape in the US.
What it tells us about wages is interesting. Total wages in U.S. hotels are projected to increase by 2.13% in 2025 compared to 2024, representing a 25.60% increase above 2019 levels – reflecting structural shifts in how hotels must compensate talent.
And unsurprisingly, Millennials and Gen-Z are dramatically reshaping the market. These generations spent almost twice as much on lodging in 2023 as in 2019, prioritising experiences over possessions.
Consider these striking statistics:
- 70% have been inspired to visit a destination after seeing it in entertainment media (it may all change if/once the TikTok ban comes into place 🙂
- 86% want to shop at small businesses during travel
- 77% have booked last-minute trips
With technology, AI is moving beyond experimentation to concrete initiatives that enhance guest experiences and streamline operations with consolidation of tech ecosystems becoming a priority as hotels seek comprehensive solutions that eliminate friction.
Google’s AI-Powered Travel Planning: The New Search Reality: Google’s latest travel planning updates represent a further acceleration in AI-powered travel tools – and further reshaping of the search landscape.
AI Overviews in Search can now generate day-by-day itineraries not just for cities but for entire regions or countries. Users can initiate this with natural language queries like “create an itinerary for Costa Rica with a focus on nature,” receiving comprehensive plans that include photos, reviews, and expandable maps.
Google is also extending its price-tracking capabilities from flights to hotels. A new toggle on google.com/hotels will send email notifications when prices for listed properties drop significantly. This feature is launching globally and represents a major step in price transparency.
The screenshot integration feature addresses a common traveller behaviour – taking screenshots of potential destinations. Using Gemini capabilities, Google Maps can now automatically identify places mentioned in screenshots and save them directly to lists within Maps.
Gemini itself is becoming a powerful travel assistant, with capabilities ranging from finding budget flights to YouTube video recommendations. Users can even create custom AI travel planners using the “Gems” feature.
Perhaps most impressive is the evolution of Google Lens as an AI-powered tour guide. By pointing their camera at landmarks, users can ask questions and receive contextual information and translation services in real-time. This feature is expanding beyond English to Hindi, Indonesian, Japanese, Korean, Portuguese, and Spanish.
Google continues to position itself at every stage of the travel journey – from inspiration to booking to on-the-ground exploration.
Asia Pacific Tourism Rebound: PATA’s Forecast for 2025-2027:
PATA’s “Asia Pacific Visitor Forecasts 2025-2027” projects a significant tourism rebound in the region. International Visitor Arrivals (IVAs) are expected to reach 813.7 million by 2027, up from an estimated 648.1 million in 2024.
Two key factors are driving this growth: Strategic policy shifts, including China’s visa-free transit expansion and Thailand’s “Six Countries, One Destination” initiative.
Improved transportation infrastructure enhancing regional connectivity
The market dynamics are shifting in interesting ways. China is predicted to regain its position as the top inbound destination by 2027, while also remaining the largest source market for outbound travel.
The USA, Türkiye, and Hong Kong SAR are expected to be among the top performing destinations. (not sure how the US will fare under the current perceived and real issues in travelling there!) Meanwhile, Mongolia, Türkiye, Sri Lanka, and Japan are anticipated to lead in recovery rates, surpassing their pre-pandemic visitor numbers.
Several macro trends are shaping this recovery:
- Economic shifts within the region and globally
- Geopolitical factors influencing travel patterns
- Technological advancements “poised to redefine travel experiences”
- Growing focus on sustainable tourism initiatives
The commercial opportunity outlined by the report for the region is substantial, but will require nuanced strategies tailored to specific markets and traveller preferences.
AI Adoption in Corporate Travel: High Potential, Significant Challenges: The “2025 State of AI in Corporate Travel” report by Serko and Sabre analysed by The Business Travel Mag reveals a fascinating tension in AI adoption within the business travel sector. While over 90% of respondents are using AI and generative AI, many corporate travel programmes are struggling to scale their efforts effectively.
The primary drivers for AI adoption are telling:
- Cost savings (71%)
- Enhancing traveller experience (68%)
- Improving data analysis (63%)
Initial outcomes appear promising – 52% of respondents say AI has exceeded expectations, while 45% say it’s meeting them. Nearly half of travel managers believe AI will have a “significant” or “transformative” impact on their programmes over the next five years.
However, the implementation challenges identified are equally significant:
- 46% cite implementation hurdles
- 19% point to a lack of internal talent
- 14% mention budget constraints
Perhaps most concerning is the gap in support – 49% of travel managers say support from travel partners is only “moderate,” while 11% say they’ve received little or no help.
What Hotels Can Learn from SAS Airlines’ Digital Transformation: The recent Web in Travel podcast featuring Caroline Bergstrom from SAS Airlines reveals compelling insights on travel technology transformation that have direct relevance for the hotel sector.
SAS’s approach centres on creating what they call a “one-stop shop” experience – a comprehensive platform where travellers can access everything from airport transfers and parking to flights, accommodation, and destination activities. The commercial parallel for hotels is striking. Rather than viewing themselves as simply providers of rooms, forward-thinking properties are becoming curators for more of the guest journey and tapping into ancillary opportunities.
The airline’s data and AI strategy offers particularly valuable lessons. SAS leverages customer data to predict needs and deliver relevant ancillary products at precisely the right moment. Hotels sitting on treasure troves of guest preference data could be applying similar principles to drive meaningful personalisation – from pre-arrival room customisation to targeted on-property experiences.
What’s most revealing is SAS’s candid assessment of its legacy technology limitations. By acknowledging the constraints of outdated systems, they made the strategic decision to rebuild rather than patch. How many hotels are still hampered by fragmented technology stacks that prevent true innovation? Now isn’t that a fun topic to dwell on?! The commercial cost of maintaining these systems extends far beyond the IT budget – it impacts revenue potential across the entire operation.
Perhaps most intriguing is SAS’s experimentation with gamification through real-time bidding for upgrades. This adds an element of engagement and excitement while optimising revenue. Could hotels explore similar approaches to transform traditionally static upselling into interactive experiences that benefit both the property and the guest?