Hotels face a more fragmented marketplace in 2026
Rising APAC demand, short-term rental competition, and the rise of AI planning tools are reshaping distribution and guest acquisition
Phocuswright’s Travel Forward: Data, Insights and Trends for 2026 outlines the structural changes reshaping global travel demand — with direct implications for hotel revenue, distribution, and guest acquisition. The report forecasts global travel bookings approaching $1.67 trillion in 2025, supported by strong digital adoption, rising Asia-Pacific demand, and a steady rebound in business and international travel. It highlights how OTAs, short-term rentals, and emerging AI-based planning tools are competing for traveler attention earlier in the journey. For hoteliers, the findings point to a more fragmented marketplace where understanding regional patterns, channel behavior, and evolving guest expectations becomes essential.
Key takeaways
Global travel demand expands: Total travel bookings are expected to reach roughly $1.67 trillion in 2025, signaling continued growth that will flow into hotel demand — though unevenly across regions.
Asia Pacific drives momentum: Strong intra-regional travel and rising disposable income make APAC the fastest-growing source of hotel demand, while North America and Europe stabilize at mature levels.
Digital booking dominance: A growing share of travelers book stays online, strengthening OTAs and metasearch while increasing the pressure on hotels to optimize direct channels and pricing accuracy.
Short-term rental competition intensifies: Rentals continue to capture leisure demand and length-of-stay segments, requiring hotels to differentiate through experience, flexibility, and value.
AI reshapes the discovery phase: More travelers rely on AI-powered tools for trip inspiration and itinerary planning, shifting influence away from traditional SEO and raising the importance of structured hotel content and rate integrity.
Distribution landscape evolves: OTAs maintain strong global influence, but channel performance varies widely by region, requiring hotels to continuously evaluate mix, margins, and partner effectiveness.
Guest expectations diversify: Travelers increasingly seek personalization, clear value, and flexibility, prompting hotels to strengthen their CRM, upselling strategies, and pre-arrival engagement.
Data-driven strategy becomes essential: The report emphasizes that hotels will need more granular market intelligence to navigate channel dynamics, forecast demand shifts, and identify revenue opportunities as the industry becomes more complex.
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