5 Stories, Week 50 2025: Are Hotels Prepared for the Six Seismic Shifts Reshaping Travel in 2026?

5 Stories, Week 50 2025: Are Hotels Prepared for the Six Seismic Shifts Reshaping Travel in 2026?

Here are few of the stories that caught our attention over the week with some of our takeaways. Watch the video for a summary or scroll down for the analysis.

Story 1

Are Hotels Prepared for the Six Seismic Shifts Reshaping Travel in 2026?

A comprehensive 2026 travel forecast from Amadeus identifies six transformative trends that will fundamentally alter how hotels compete for guests, distribute their inventory, and design their product offerings.

The Pawprint Economy Creates a New Revenue Segment

With 56% of people globally now owning a pet and Bloomberg forecasting the pet industry will reach $500 billion by 2030, hotels face a genuine commercial opportunity rather than a marketing gimmick. The barriers are clear: 42% of pet parents cite concerns about pet stress, whilst 21% point to a lack of genuinely pet-friendly accommodation.

The revenue implications are substantial. Properties that move beyond “pet tolerant” to “pet centric” can build loyalty programmes around returning guests’ animals, charge premiums for dedicated amenities, and capture share from the growing private air charter market for pets. AKA Hotels’ Canine Club, launched in April 2025, demonstrates how pet loyalty can drive direct bookings and reduce distribution costs.

Travel Mixology Demands Multi-Channel Content Distribution

The explosion in generative AI use for trip planning – up 64% year-on-year from 11% to 18% – masks a critical trust deficit. Some 25% of travellers received outdated or inaccurate information from AI tools, driving them to human-centric platforms where Reddit’s r/travel community grew 31% to 1.9 million members.

For hotels, this creates a distribution challenge requiring presence across both AI platforms and traditional peer-to-peer channels. Your content needs to feed Google Flights’ “vibe-based” search using Amadeus inventory, Expedia’s Instagram-to-itinerary conversion tool, and maintain authority on platforms where word of mouth (36%) and user-generated video (26%) remain the most influential sources.

Point-to-Point Precision Opens Secondary Markets

The Airbus A321XLR, with over 500 orders and deliveries beginning late 2025, is democratising long-haul travel by connecting secondary cities directly to international markets. Iberia’s strategy to operate nearly 10% of transatlantic flights with narrow-body aircraft by early 2026, combined with Aer Lingus seeing triple-digit growth on routes to Indianapolis (+171%) and Nashville (+102%), signals a shift in feeder patterns.

Hotels in secondary cities that were previously dependent on connecting traffic through major hubs now have direct access to international source markets. The 25-30% fuel efficiency gains these aircraft deliver also make previously marginal routes commercially viable, opening distribution opportunities in markets that major carriers ignored.

Pick ‘n’ Stays Enables Attribute-Based Pricing

The evolution of Central Reservation Systems, particularly Amadeus’ iHotelier and partnerships with Shiji, now enables hotels to move from rigid room categories to attribute-based booking. The commercial case is compelling: 63% of travellers will pay extra for specific room attributes, with 17% of US business travellers willing to pay up to 20% more for in-room business services.

This isn’t personalisation theatre. Hotels can now monetise individual features – views, specific bed configurations, floor levels, proximity to lifts – that were previously bundled into opaque rate categories. Platforms like Hotelverse’s 3D digital twins allow guests to select and pay for the exact room they want, eliminating the “room assignment lottery” that drives negative reviews and reducing friction in the booking process.

The technology also enables unbundling of the hotel stay itself: afternoon nap rooms, post-checkout shower access, and time-based room rentals create new revenue opportunities from existing inventory. When 12% of Gen Z travellers will pay up to 25% more for an Xbox or premium TV channels, hotels have granular pricing power they’ve never possessed.

Story 2

Meetings & Events in 2026: Where “Doing More with Less” Meets Executive Scrutiny

A comprehensive analysis of the global Meetings and Events landscape by BCD Travel reveals a sector repositioning itself from logistical cost centre to high-stakes business investment, with direct implications for hotel group sales teams and revenue management.

The Strategic Elevation of M&E Spend

The fundamental shift is cultural rather than financial. M&E spending is being aligned more closely with core business objectives – driving brand loyalty, engaging employees, increasing sales, and boosting customer relationships. Sue Darlaston, VP of Sales Solutions at BCD M&E, states: “In 2026, success will hinge on designing meetings with clear objectives and measurable outcomes.”

This elevation brings greater involvement from procurement, finance, and marketing departments, all scrutinising budgets and demanding accountability. For hotels, this means the traditional relationship between sales teams and meeting planners no longer suffices. Properties now need to demonstrate ROI and Return on Experience (ROE) in concrete terms, not just provide competitive rates and quality service.

Event Portfolios Are Being Restructured

The research identifies clear winners and losers in event type prioritisation. Client-focused events, networking-heavy formats, and marketing and sales events are gaining budget share because they directly impact the bottom line. Conversely, in-person events for pure information delivery are declining as organisations recognise this content can be delivered more efficiently online.

Global internal events face particular scrutiny unless they demonstrate clear, measurable benefits for participants. Generic external events lacking distinctiveness will struggle to capture audience attention in what the report describes as the “Attention Economy” – where attention has become as scarce a resource as labour and capital.

For hotels, this restructuring means fewer but higher-value events. The UK market is expected to see consolidation: fewer meetings, but with higher average spend per event. Properties that positioned themselves for volume business may need to recalibrate their group sales approach.

Regional Dynamics Reshape Demand Patterns

North America is experiencing a strategic shift towards domestic events as international demand slows, driven by economic uncertainty and geopolitical concerns. This strengthens the case for local partnerships but puts pressure on properties that invested in infrastructure targeting international association business.

Europe presents a more positive outlook in terms of volume and value, potentially becoming a hotspot due to security concerns elsewhere. However, sustainability credentials are now critical decision factors, particularly given EU directives on supply chain and Scope 3 emissions. Properties without robust environmental programmes will find themselves excluded from consideration by multinational companies, regardless of price competitiveness.

Asia-Pacific expects cautious growth with higher spend per event compensating for volume constraints. Budgets remain under scrutiny, driving planners toward more affordable destinations like Jakarta, Kuala Lumpur, and Ho Chi Minh City over traditional hubs like Tokyo or Singapore. Hotels in these secondary Asian cities have an opportunity to capture share from premium markets, provided they can demonstrate value rather than just lower rates.

Technology and AI Move from Experiment to Execution

The adoption of AI in M&E planning is moving beyond experimentation. Both Generative AI (for content creation, data analysis) and Agentic AI (for taking actions like reviewing contracts) will see wider adoption. Ted Stone, SVP at BCD M&E, notes: “It’s essential to define clear objectives and maintain the human touch, as we further leverage AI to enhance efficiency.”

For hotels, this means RFP responses will increasingly be evaluated by AI systems before human review. Properties need to structure their proposals with clear, data-driven ROI metrics and measurable outcomes. The traditional narrative-heavy proposal format that relies on subjective brand positioning will be filtered out before it reaches decision-makers.

AI-powered assistants are also streamlining delegate management and attendee queries, reducing the operational burden on hotel staff but raising expectations for response times and personalisation. When an AI system can instantly match attendees for networking based on professional profiles and interests, hotels need comparable systems to manage the enhanced expectations for seamless service delivery.

Venue Selection Criteria Are Evolving

The search for venues now prioritises “money can’t buy” experiences – exclusive retreats, resort-style properties, and unique venues that create memorable events. This is particularly pronounced in finance, banking, and technology sectors, where the attention economy makes immersive experiences a worthwhile investment in capturing undivided participant focus.

The rise of Generative AI in venue discovery means hotels need to optimise their content for AI search. The future lies in a blended approach: AI systems trawling vast databases combined with human intelligence providing customised solutions. Properties with rich, structured data about their meeting spaces, amenities, and capabilities will surface in AI-driven searches, whilst those relying on PDF brochures and static website content will become invisible.

Story 3

Can Traditional OTAs Survive the Shift to Agentic Commerce?

An analysis of agentic commerce by Edgar Dunn – where AI agents autonomously search, book, and personalise travel on behalf of consumers – reveals an existential threat to Online Travel Agents’ established business models, particularly around who acts as the Merchant of Record in transactions.

The Reseller Model Loses Control

For OTAs operating as the Merchant of Record (the traditional “merchant model”), agentic commerce inserts the AI agent between the OTA and the traveller’s checkout process. This strips away the competitive advantage that OTAs spent billions building through conversion optimisation and user experience design.

The commercial implications are immediate. When payment failures occur, communication routes through the AI agent rather than directly to the traveller, resulting in lost sales. Revenue from Dynamic Currency Conversion and Multi-Currency Pricing – substantial margin generators – disappears when the AI agent controls the payment interface. The OTA becomes just another API endpoint serving content to a platform they don’t control.

The Pass-Through Model Faces Disintermediation

OTAs using the pass-through model (where the supplier is the Merchant of Record) face a more severe threat. AI agents can bypass the OTA entirely, sourcing inventory directly from suppliers, bedbanks, or Global Distribution Systems. The OTA’s role diminishes to that of just another content aggregator competing on the AI platform.

New Payment Models Create Strategic Openings

The most significant development is the potential for AI agents themselves – or their partners – to assume the Merchant of Record role. This presents both threat and opportunity. If AI companies avoid the complexity of being an MoR, an OTA with robust payment infrastructure could become the MoR service provider for AI agents, essentially operating their proven reseller model within the new ecosystem.

For hotels, this shift matters because it will determine future commission structures and which intermediaries survive. Properties currently dependent on OTA distribution need to assess whether their API connectivity and content feed the AI platforms directly or remain trapped behind OTA paywalls. The distribution landscape won’t simply add AI agents as another channel – it will restructure who captures value in the booking chain and who gets disintermediated entirely.

UK Travel Industry’s £2.68 Billion Technology Investment Signals Sector-Wide Transformation: The Travolution Innovation Report 2025 documents record-breaking IT expenditure and identifies Agentic AI as the dominant technological force reshaping UK travel, with implications extending far beyond British borders.

Investment Patterns Reveal Strategic Priorities

The UK travel industry’s total IT spend reached £2.68 billion in 2024, a 14% year-on-year increase and 36% above the pre-pandemic peak in 2019. Forecasts anticipate a further 12% rise to £2.97 billion in 2025. This isn’t maintenance spending – it’s transformation capital.

The breakdown reveals where the sector is placing its bets. Computer Services (consultancy, outsourcing, support) surpassed £1 billion for the first time, whilst Software spending grew fastest at 38% year-on-year. Passenger Air Transport led all sectors with £962.7 million spend (+21%), driven by initiatives like British Airways’ £7 billion transformation programme.

For hotels, which invested £539.4 million (+9%), the relatively modest growth rate masks a critical challenge identified in the report: a “cost-centre” mindset that continues to view technology as an expense rather than a revenue enabler. Jessica Gillingham’s research found this cultural barrier – not capital constraints – remains the primary obstacle to technology adoption in hospitality.

Agentic AI Moves from Experimentation to Implementation

Joe Welton, AWS’s head of travel, transport and hospitality in the UK, described Agentic AI’s potential as “profound,” with the technology moving software business models from “per seat, per licence and per user” to “per agentic outcome” pricing. Major operators including United Airlines, Tui, and Accor Hotels have begun building their own agentic solutions, whilst Heathrow Airport launched “Hallie” on WhatsApp to improve service.

The commercial implications for hotels centre on conversational interfaces replacing traditional website navigation. Trainline’s investment in conversational designers demonstrates the recognition that these interfaces offer superior brand expression compared to static websites. For properties still debating chatbot implementation, the conversation has moved beyond basic automation to autonomous agents that complete tasks independently.

Data Silos Obstruct the Joined-Up Journey

The report identifies fragmented systems as the critical bottleneck preventing hotels from delivering the seamless experiences travellers now expect. Julie Shainock, Microsoft’s global travel and transportation industry leader, noted that whilst historical resistance to data sharing persists, “the sharing of data is key and going forward everyone is going to win from that perspective.”

The challenge isn’t technological – it’s organisational. Hotels operate separate systems for bookings, guest communication, operations, and revenue management, creating blind spots that undermine both efficiency and personalisation. When David Norris of Holiday Extras states that “AI can really help us provide real personalisation that’s been tipped for decades,” he’s acknowledging that the technology now exists but many operators lack the clean, orchestrated data required to deploy it effectively.

Story 4

UK Travel Industry’s £2.68 Billion Technology Investment Signals Sector-Wide Transformation

The Travolution Innovation Report 2025 documents record-breaking IT expenditure and identifies Agentic AI as the dominant technological force reshaping UK travel, with implications extending far beyond British borders.

Investment Patterns Reveal Strategic Priorities

The UK travel industry’s total IT spend reached £2.68 billion in 2024, a 14% year-on-year increase and 36% above the pre-pandemic peak in 2019. Forecasts anticipate a further 12% rise to £2.97 billion in 2025. This isn’t maintenance spending – it’s transformation capital.

The breakdown reveals where the sector is placing its bets. Computer Services (consultancy, outsourcing, support) surpassed £1 billion for the first time, whilst Software spending grew fastest at 38% year-on-year. Passenger Air Transport led all sectors with £962.7 million spend (+21%), driven by initiatives like British Airways’ £7 billion transformation programme.

For hotels, which invested £539.4 million (+9%), the relatively modest growth rate masks a critical challenge identified in the report: a “cost-centre” mindset that continues to view technology as an expense rather than a revenue enabler. Jessica Gillingham’s research found this cultural barrier – not capital constraints – remains the primary obstacle to technology adoption in hospitality.

Agentic AI Moves from Experimentation to Implementation

Joe Welton, AWS’s head of travel, transport and hospitality in the UK, described Agentic AI’s potential as “profound,” with the technology moving software business models from “per seat, per licence and per user” to “per agentic outcome” pricing. Major operators including United Airlines, Tui, and Accor Hotels have begun building their own agentic solutions, whilst Heathrow Airport launched “Hallie” on WhatsApp to improve service.

The commercial implications for hotels centre on conversational interfaces replacing traditional website navigation. Trainline’s investment in conversational designers demonstrates the recognition that these interfaces offer superior brand expression compared to static websites. For properties still debating chatbot implementation, the conversation has moved beyond basic automation to autonomous agents that complete tasks independently.

Data Silos Obstruct the Joined-Up Journey

The report identifies fragmented systems as the critical bottleneck preventing hotels from delivering the seamless experiences travellers now expect. Julie Shainock, Microsoft’s global travel and transportation industry leader, noted that whilst historical resistance to data sharing persists, “the sharing of data is key and going forward everyone is going to win from that perspective.”

The challenge isn’t technological – it’s organisational. Hotels operate separate systems for bookings, guest communication, operations, and revenue management, creating blind spots that undermine both efficiency and personalisation. When David Norris of Holiday Extras states that “AI can really help us provide real personalisation that’s been tipped for decades,” he’s acknowledging that the technology now exists but many operators lack the clean, orchestrated data required to deploy it effectively.

Connection Becomes the New Currency: What Minor Hotels’ Research Reveals About 2026 Travel Motivations: Minor Hotels’ comprehensive survey of 906 travellers uncovers a fundamental shift in guest priorities, with implications for hotel product design, revenue management, and distribution approaches.

The Numbers Behind the Connection Economy

With 94% of travellers expecting to travel as much or more in 2026, and 47% planning to increase budgets, the sector faces strong demand. However, the motivation has shifted. Some 86% cite spending quality time with friends or family as a key priority, whilst 71% travel specifically for personal renewal and self-care. This isn’t soft sentiment – it’s actionable intelligence about what drives booking decisions and commands premium pricing.

The luxury segment shows even stronger signals, with 61% expecting to increase trip frequency compared to 34% overall. More tellingly, 83% of luxury travellers prefer keeping group activities exclusively with their companions, indicating a willingness to pay for privacy and intimacy that hotels can monetise through exclusive spaces and experiences.

Authenticity Drives Destination Loyalty

The finding that 76% of travellers have revisited a location specifically because they felt a personal bond with it demonstrates how cultural connection translates directly to repeat business and reduced distribution costs. Food operates as the primary cultural gateway (85%), followed by historic architecture (71%) and nature (65%).

For hotels, this validates investment in hyperlocal F&B programmes, partnerships with local producers, and curated neighbourhood guides. The 79% of travellers who favour independent exploration over organised tours suggests that properties should facilitate discovery rather than prescribe it, positioning the hotel as an enabler of authentic connection rather than a gatekeeper.

Sustainability Influences 47% of Booking Decisions

Nearly half of respondents report that a hotel’s sustainability record influences their accommodation choice, rising to 76% among guests who already prioritise sustainability. Critically, 54% agree that a property’s environmental and social initiatives enhance their connection to the destination – meaning sustainability isn’t just a screening criterion but a value-add that deepens guest engagement.

The gap between interest (61% want to know more about sustainable travel) and information (only 46% feel well-informed) represents a distribution and communication opportunity. Hotels that proactively educate guests about their programmes and facilitate participation can differentiate on a dimension that influences nearly half of booking decisions.

Booking Windows Shrink to Three Months

With 53% of travellers now booking within three months of departure, hotels face compressed planning cycles that favour agile revenue management and real-time inventory optimisation. The dominance of hotel websites as the primary planning source (80%, significantly ahead of personal recommendations at 35% and OTAs at 29%) reinforces the imperative for direct channel investment.

The 12% of travellers now using generative AI for trip planning, whilst still modest, represents the leading edge of the distribution shift discussed in previous reports. Properties that haven’t optimised their content for AI consumption risk invisibility as this percentage grows.

Story 5

Connection Becomes the New Currency: What Minor Hotels’ Research Reveals About 2026 Travel Motivations

Minor Hotels’ comprehensive survey of 906 travellers uncovers a fundamental shift in guest priorities, with implications for hotel product design, revenue management, and distribution approaches.

The Numbers Behind the Connection Economy

With 94% of travellers expecting to travel as much or more in 2026, and 47% planning to increase budgets, the sector faces strong demand. However, the motivation has shifted. Some 86% cite spending quality time with friends or family as a key priority, whilst 71% travel specifically for personal renewal and self-care. This isn’t soft sentiment – it’s actionable intelligence about what drives booking decisions and commands premium pricing.

The luxury segment shows even stronger signals, with 61% expecting to increase trip frequency compared to 34% overall. More tellingly, 83% of luxury travellers prefer keeping group activities exclusively with their companions, indicating a willingness to pay for privacy and intimacy that hotels can monetise through exclusive spaces and experiences.

Authenticity Drives Destination Loyalty

The finding that 76% of travellers have revisited a location specifically because they felt a personal bond with it demonstrates how cultural connection translates directly to repeat business and reduced distribution costs. Food operates as the primary cultural gateway (85%), followed by historic architecture (71%) and nature (65%).

For hotels, this validates investment in hyperlocal F&B programmes, partnerships with local producers, and curated neighbourhood guides. The 79% of travellers who favour independent exploration over organised tours suggests that properties should facilitate discovery rather than prescribe it, positioning the hotel as an enabler of authentic connection rather than a gatekeeper.

Sustainability Influences 47% of Booking Decisions

Nearly half of respondents report that a hotel’s sustainability record influences their accommodation choice, rising to 76% among guests who already prioritise sustainability. Critically, 54% agree that a property’s environmental and social initiatives enhance their connection to the destination – meaning sustainability isn’t just a screening criterion but a value-add that deepens guest engagement.

The gap between interest (61% want to know more about sustainable travel) and information (only 46% feel well-informed) represents a distribution and communication opportunity. Hotels that proactively educate guests about their programmes and facilitate participation can differentiate on a dimension that influences nearly half of booking decisions.

Booking Windows Shrink to Three Months

With 53% of travellers now booking within three months of departure, hotels face compressed planning cycles that favour agile revenue management and real-time inventory optimisation. The dominance of hotel websites as the primary planning source (80%, significantly ahead of personal recommendations at 35% and OTAs at 29%) reinforces the imperative for direct channel investment.

The 12% of travellers now using generative AI for trip planning, whilst still modest, represents the leading edge of the distribution shift discussed in previous reports. Properties that haven’t optimised their content for AI consumption risk invisibility as this percentage grows.

Scroll to Top