🔮 2026 Hotel Profitability Outlook

Hotel revenues fell short of budget in Q3 - RevPAR down 10.8% - yet profit margins held at a strong 37.7%. Midscale operators led the way, proving that lean, disciplined operations outperform flashier growth strategies in a flat market.

🎯 Why it matters: This is a clear signal: profitability in 2026 won’t come from chasing rate hikes. It will come from controlling what you can: costs, labor, and operations (and adapting fast when revenue doesn’t show up).

🔑 Key takeaway: If you want to stay ahead in 2026, now’s the time to benchmark your margins, rethink your service model, and get serious about cost discipline. Download the 2026 Profitability Outlook to see where you stand and where the smart money’s heading.

👉 Download the 2026 hotel profitability forecast

I’ve been saying all along that LLM search is just an evolution from the trends that have been going on in search for decades but that it won’t change the model. Google is now placing ads directly within its AI-generated search responses, a significant evolution from earlier tests. This integration is gaining traction, with multiple industry figures confirming increased sightings across desktop searches.

🎯 Why it matters: This move signals Google's intent to make AI Mode a core part of its advertising ecosystem. It reflects a broader industry trend: monetizing generative AI by embedding commerce into machine-generated content.

🔑 Key takeaway: For hotel operators, this means paid visibility on Google may soon extend beyond traditional search ads into AI-generated recommendations. Start watching how your property shows up in AI results and prepare budgets to test these new ad formats before competition intensifies. Read More →

Tripadvisor reports a 45% year-over-year jump in winter travel, with 60% of travelers planning trips and over half (54%) staying five nights or more. Experiences are the priority—93% of travelers are budgeting for them, with cultural tours and day trips topping the list.

🎯 Why it matters: This surge reflects a broader shift toward experience-led travel and longer stays, echoing trends seen in leisure demand post-COVID. The strong spending confidence—despite economic uncertainty—suggests travelers are willing to pay for value, not just price.

🔑 Key takeaway: Hotels should tailor packages and upsell offers around curated local experiences and cultural activities, especially in urban and tropical destinations. Operators in markets like NYC, Cancun, and Bangkok must be ready for longer bookings and experience-hungry guests, with pricing, staffing, and amenities to match. Read More →

Expedia Group is leveraging its massive global travel dataset and AI to reshape everything from consumer booking to backend operations. With 1,500 internal GenAI agents built by employees and over 50% of customer support handled by virtual agents, the OTA is pursuing a 3-pronged AI strategy: traveler tools, partner insights, and internal automation.

🎯 Why it matters: As AI transforms digital discovery and booking, OTAs like Expedia are racing to differentiate before Google and other giants fully enter transactional travel search. Expedia’s unified platform across B2C and B2B, combined with its deep data pool from multiple brands, positions it to personalize at scale.

🔑 Key takeaway: For hotel operators, this means Expedia’s AI tools could soon offer sharper demand insights and booking behavior predictions. Those partnering via white-label or Rapid API integrations may benefit from faster, more intelligent connectivity—so staying aligned with Expedia’s tech roadmap could be a competitive edge.For hotel operators, this means Expedia’s AI tools could soon offer sharper demand insights and booking behavior predictions. Those partnering via white-label or Rapid API integrations may benefit from faster, more intelligent connectivity—so staying aligned with Expedia’s tech roadmap could be a competitive edge. Read More →

✅ Profitsword: Turn powerful BI data into actionable insights that maximize profits.

✅ Cloudbeds: All-in-one hotel management software at the speed of AI.

✅ Tripleseat: Manage hotel group bookings, catering and event sales with AI.

✅ Canary Technologies: Powerful but simple AI powered digital guest journey platform.

✅ M1 Intel: Purpose-built sales platform to help your hotel close more deals.

✅ Otelier: Optimize hotel budgets and forecasts with precise, data-driven insights.

✅ MeetingPackage: Simplify MICE bookings and boost event revenue.

What happens when the Chief Commercial Officer of the world’s largest hotel franchisor rethinks the entire guest-to-tech relationship? In this episode, Wyndham CCO Scott Strickland reveals how a single global tech stack, empathetic AI, and vendor co-development are quietly reshaping hotel operations at a scale few brands on earth can match.

Key Takeaways:

👉🏼 Check out the interview on Apple Podcasts or Spotify.

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