The 11 travel and hospitality trends that will shape 2026

Travel and hospitality businesses must now win over a more discerning, AI-armed traveler, while contending with an unstable global economy

These external pressures are already impacting travel demand and moulding traveler behavior. Consumers remain highly motivated to travel but they are becoming more cautious. Affordability concerns and over-tourism pressures are pushing them to search for value across a wider mix of destinations and alternative travel windows.

Hoteliers must adapt to these changes offering highly personalized, segmented offers that maximize the appealing characteristics of their property, and then distribute them across a broader range of channels than ever before.

If you can establish the right technological foundations to operate in this complex and uncertain environment you will have the best shot at success in 2026; making the coming 12 months a key year for investment and transformation.

1. A turbulent travel and hospitality environment

Geopolitical and economic instability will continue to loom over the travel industry, just like any other. ‘Business as usual’ isn’t returning any time soon, so you must be prepared to act with agility and confidence in times of disruption

The US market began 2025 in a relatively strong position but softened as the year progressed (see our 2025 trends for more).

That slowdown is reflected in traveler behavior. Searches for one-night stays in North America accounted for more than 40% of all hotel searches in mid-August 2025, up from 33% in January 2023. The share of searches made within 28 days of arrival also climbed to 57% by mid-August 2025, compared with 50% in 2024 and 46% in 2023.

Travel intent in North America remains high, but lower consumer confidence is driving cautious behaviour, with consumers opting for shorter stays and holding out for last-minute deals.

This shift is a result of economic uncertainty, a weaker job market and volatile policies (like tariffs); alongside a backlash from international tourists (especially Canadians), to trade policies, and entry requirements into the US.

With no end in sight to sudden policy changes from the US, particularly concerning trade and visas, it is clear that geopolitical instability will be a key trend to watch, particularly with regards to the US.

Looking ahead, however, the 2026 FIFA World Cup is poised to deliver a much-needed boost for US hoteliers, with early demand signals already showing promise for host cities.

But, instability isn’t limited to North America. As 2025 was drawing to a close, a diplomatic spat between Japan and China caused the Chinese government to advise against travel and multiple flight routes were cancelled, curtailing what had been strong inbound growth from Mainland China.

Other regions saw similar disruptions. A terrorist attack and brief conflict in Pakistan led to a sharp drop in resort occupancy, while a border skirmish weighed on tourism flows into Cambodia. And the ongoing Russian invasion of Ukraine continues to unsettle travel patterns across Europe.

These disruptions show up in the data. Forecast prices for the next six months underscore this volatility, with wide regional dispersion in Year-on-Year (YoY) changes across H1 2026.

These disruptions show up in the data. Forecast prices for the next six months underscore this volatility, with wide regional dispersion in Year-on-Year (YoY) changes across H1 2026.

There is a 20-percentage-point gap between the strongest and weakest regions. Asia and the Middle East are seeing average hotel prices up 9% for H1 2026, while Oceania shows an 11% decline compared with the first half of 2025.

This divergence mirrors the broader uncertainty facing the global travel sector. Geopolitical risks could intensify in 2026, with rising tension across the Middle East, the Korean Peninsula, Eastern Europe, as well as increasing friction between the US and Venezuela.

The IMF noted in its October Economic Outlook that the World Uncertainty Index reached multi-year highs by August 2025.

Amid such uncertainty, hoteliers need systems that give a clear read on demand as it shifts. The hotels that can monitor changes in real time and adjust pricing or availability first are best positioned to capture opportunities when they appear.

2. Traveler taxes set to go upwards

Politics will hit travelers' wallets harder in 2026, with rising tourist taxes adding a premium to trips in a range of destinations

Unsurprisingly, the destinations most at risk of overtourism are seeing the highest rise in proposed tax hikes. So far, 2026 is set for:

• An executive order by the Trump administration to charge non-US residents for visits to National Parks to the tune of an additional $100 fee on top of existing charges and the requirement to purchase a $250 annual pass.

• A major increase in Kyoto’s tourism tax. The levy will go up by 300% for hotels priced between ¥50,000–¥100,000 per night and 900% for hotels that charge more than this.

• An anticipated increase to Japan’s exit tax, with a tripling rumored to be the most likely course and rising visa costs.

• A 12% bump to the VAT rate charged by the Dutch government for overnight accommodation.

• A rise in the Milan tourism tax before the 2026 Winter Olympics up to a maximum of €10 per night for a five-star hotel.

• A doubling of the tourist tax within Catalonia.

• A new measure that allows English mayors to raise revenues from overnight stays, while Edinburgh will introduce a tax of 5% of the value of accommodation.

Consumers are already approaching 2026 with financial caution. This added strain may shape some travel decisions, including destination choice, length of stay, and trip timing.

They also signal a broader shift in how governments view tourism. No longer seen as just an economic opportunity but an activity also that carries a public cost. And policymakers are increasingly willing to pass it on to visitors.

3. The dispersion of European seasonal demand

The strong return of consumer travel after COVID has been welcome news for the industry, but it has also created mounting pressure in many destinations.

Overtourism has moved near the top of local policy agendas and travelers are not ignoring these pressures either, with their behavior shifting in response.

Skyscanner’s consumer survey found that 32% of tourists had experienced a negative impact from overtourism and 34% were actively seeking quieter destinations. Meanwhile, 31% said they plan to visit major destinations in the shoulder seasons, with Indian and South Korean tourists leading this shift.

The European Travel Commission’s Q3 report echoes this trend, noting that among Europe’s eight largest source markets, 28% intend to travel in different months over the next two years, primarily to avoid crowds.

Rising accommodation and flight prices across Europe are cementing this trend. For households already squeezed by the cost of living, peak summer travel (especially during school holidays) is becoming financially out of reach, forcing a migration to the more affordable shoulder seasons.

Our own data shows this change in seasonal patterns. Across five of Europe's most visited cities – Barcelona, Istanbul, London, Paris and Rome – average occupancy rates indicate that what used to be the high season is now less popular than the surrounding shoulder months.

When averaging occupancy across the five cities and plotting it over 2025, the shift becomes clear. The traditional peak months of July and August were noticeably softer than May–June and September–October.

This pattern appears consistently across both hotels and short-term rentals, underscoring a broader move toward off-peak travel.

4. Chasing value with currency-driven travel 

Economic instability often brings sharp currency fluctuations. So when household budgets are under pressure, travelers will look for destinations where their money stretches further.

Japan offers one of the clearest examples of how currency swings can reshape travel patterns.

The country is experiencing a surge in inbound tourism, but visitor behavior is shifting. A weaker yen has increased purchasing power for many foreign travelers, leading to longer stays and higher spending, particularly in luxury retail.

At the same time, outbound travel from Japan remains slow to recover. Hotel search data from the past 365 days shows an incredibly strong preference for domestic trips, reflecting the reduced affordability of overseas travel for Japanese consumers.

For those who are still traveling internationally, the weak yen is steering demand toward closer, budget-friendly destinations such as Vietnam and Taiwan, rather than the far more expensive long-haul routes to Europe or the United States.

5. A potential slowdown in short-term rental supply growth

Short-term rental supply has expanded at remarkable speed in recent years. In regions such as Europe, where inventory now exceeds six million properties, the number of listings rivals the housing stock of a small country.

But, the pace of expansion may be losing some steam. Governments are increasingly turning to regulation and taxation to manage the growth of vacation rentals.

By 2025, these measures were showing up in our data. Supply growth slowed across most regions, and the pattern suggests this deceleration is likely to continue into 2026 as more authorities crack down on the rise of short-term rentals.

Year-over-year growth in vacation rental listings eased in every global region through October 2025:

• In Asia–Pacific, annual growth fell by half, from 21.7% to 10.4%.

• In North America, supply expansion in 2024–25 dropped to roughly one-fifth of the rate seen the previous year.

• Globally, supply growth declined from 11%to 6.5% – a still healthy rate, but a marked slowdown of 4.5 percentage points.

Shifting consumer spending patterns and pockets of oversupply explain part of this moderation, but increased government oversight is a significant driver.

Among our 25 largest markets by inventory size as of October 2025, those with the weakest growth (or outright contraction) were overwhelmingly locations where regulation intensified during the year.

With only one exception, every market in the bottom tier of supply growth has recently introduced new regulations or stepped up enforcement.

This includes recent measures at a national level in France, Italy, Mexico, Spain, South Korea, as well as city-specific restrictions in Dubai, Los Angeles, and Phoenix.

Buenos Aires, the sole exception, saw a sharp contraction driven not by regulation but by severe economic disruption and falling tourist arrivals.

In contrast, markets with little or no formal regulation such as Marrakech, Manila and Rio de Janeiro, continued to see stronger growth.

Others posting positive growth, including Istria in Croatia and Crete, are already preparing for tighter controls in 2026.

The disparity in supply dynamics across major destinations, coupled with a broader deceleration in growth, suggests that regulation is materially curbing the influx of new listings.

6. Quality accommodation has high value for consumers

While accommodation providers can tap into the desire for experience-led travel by highlighting local tours and events, they should not overlook the power of the property itself.

Increasingly, travelers treat high-quality accommodation as the primary attraction rather than simply a place to stay. Even with household finances under pressure, many are unwilling to compromise on accommodation.

Nowhere was this more evident than in 2025 than in Africa, where hotels displayed a two tier market.

Average hotel rates fell nearly 20% overall, dropping to USD 161 by August 2025, but the decline was almost entirely concentrated in the mid-range segment. Five-star properties remained largely insulated, with rates holding steady and ending the period only 1.1% lower.

Consumer surveys underline this shift in priorities. Skyscanner reports that 45% of travelers chose a destination specifically because of where they could stay. For Gen Z that figure went up 61‏%.

Hotels.com found that 54% of consumers were even willing to book multiple hotels in the same destination to shape the experience they want.

At the same time, a growing focus on recuperation and wellness is lifting the value placed on high-quality accommodation.

Hilton found “rest and recharge” to be the biggest motivation for 56% of respondents, while a Marriott survey of affluent Asian travelers showed that 90% prioritised wellness when making their booking – up 10 percentage points YoY.

7. A shifting travel heat map and the rise of "Destination Dupes" 

There is no dent to the desire to travel in 2026, even though many consumers are experiencing reduced means to splurge on vacations.

Modern travelers are prioritizing experiences that align with their personal values, whether that means seeking tranquility, fostering connection, or pursuing a journey defined by specific passions.

Hilton’s annual trend survey of global travelers uncovered several statistics illustrating this trend clearly:

• 86% report that experiences are more valuable than material gifts.

• 72% want to go on a vacation to “explore a personal passion, skill, or hobby”.

• Two-thirds (67%) of millennials structure trips around interest-based events such as sports, wellness and music.

Therefore, travelers are seeking a sweet spot: destinations that offer adventure and cultural depth, but remain affordable, and free of the overcrowding associated with traditional favourites.

These preferences are already sculpting new demand patterns, with Europe’s South and Southeast Asia seeing some of the strongest uplifts in Q1 2026.

Destinations with notable year-over-year increases in daily demand include:

• Albania: 1.5%

• Cambodia: 3.4%

• Croatia: 4.4%

• Cyprus: 4.9%

• Hungary: 3.5%

• Philippines: 1.9%

• Portugal: 2.4%

• Slovenia: 1.4%

• Sri Lanka: 5.6%

• Thailand: 3%

• Vietnam: 5.6%

South-East Asia, in particular, is showing strong signs of recovery in regional travel, helped largely by the resurgence of the Chinese outbound market. Following Thailand’s 2023 precedent, Cambodia recently waived visas for Chinese nationals to jumpstart its tourism economy.

If momentum continues, Chinese outbound volumes could return to pre-pandemic levels by 2026, positioning Asia-Pacific as the principal beneficiary.

However, the wider trend points to a shift in consumer priorities. Rather than travelers canceling trips, they substitute high-cost, busy destinations with cheaper, culturally or geographically similar alternatives. A trend referred to as "Destination Dupes".

For example, over the past year Albania has positioned itself as a low-cost option to Greece for European travelers looking for Mediterranean sun and sand.

As long as economic uncertainty persists, dupe travel is here to stay. It is a structural change in how consumers value travel.

However, the window to capitalize on this demand is narrow. As seen in Albania, once  a hidden gem becomes widely recognized, it rapidly becomes a new hotspot. 

Lighthouse pricing data reveals that actualized room prices in Albania rose 14% over the summer of 2025 (June–August) compared to 2024. In contrast, prices in Greece rose by just 2%. 

Proof that once a dupe is discovered, the price gap can close quickly, and a new destination may become en vogue.

8. AI adoption is set for a stratospheric rise

AI usage for trip planning doubled over the past year. We expect this growth to accelerate rapidly in 2026, with generative AI moving beyond itinerary building to becoming a core tool for search, comparison, and booking.

AI will also become increasingly embedded in the daily workflows of commercial teams, allowing hotels to accomplish more with fewer manual tasks.

AI-powered tools like Smart Summaries (converting metrics to quick reports) and Smart Insights (surfacing key data insights) significantly reduce administrative work. This frees commercial teams to focus on strategy instead of struggling to compile data.

On the traveler's side, AI has already become engrained in the planning process. Hilton found that 61% of travelers find AI valuable for planning, while Skyscanner noted that more than half (54%) feel confident in using AI, up 7 points from 2024. And 32% said they are happy to use it to compare flights or hotels.

Confidence is even higher among younger generations and in emerging markets, with 70% of Gen Z having faith in their ability to use the technology, while Indian (86%) and Brazilian (81%) travelers feel the most at ease with it.

Major OTAs such as Booking.com and Expedia have made significant strides with ChatGPT integrations, but OpenAI’s SDK now makes these capabilities accessible far beyond the largest platforms.

The result is a rapidly developing ecosystem in which AI agents mediate travelers’ search journeys and booking decisions.

To capture the full value of AI-led travel planning, hotels need a direct channel option. Solutions like Connect AI bridge this gap by acting as a translator; they structure real-time rates and content via Model Context Protocols (MCP), allowing AI agents to read, interpret, and book your property directly.

This ensures hotels remain visible and bookable in AI search results, rather than ceding that ground entirely to intermediaries.

In 2026 the divide will not be between hotels that use AI and those that don't, but between those that are AI-ready and those that have become invisible.

9. Blended booking channels

AI providers aren’t the sole challengers vying for travel-wallet share.

Social media platforms are expanding their footprint, blurring the lines between inspiration and transaction, while Airbnb further added to their service offerings.

• Instagram and Expedia: Instagram now utilizes AI-powered "Trip Matching" to instantly convert visual content into bookable Expedia inventory.

• TikTok's commerce push: TikTok launched in-app booking via Booking.com and introduced "TikTok Go," enabling creators to earn commissions on travel posts.

• Airbnb's hybrid shift: Airbnb is aggressively expanding beyond short-term rentals, targeting independent hotels and B&Bs to expand its offerings across the accommodation space.

Hoteliers must remain alert to how the distribution landscape is changing. Balancing new reach against the risk of losing direct guest connections

As the funnel expands and splinters, marketing spend demands greater precision to ensure measurable impact.

10. Data driven hyper-personalization

As travelers increasingly align their trips with individual niches and experiences, detailed personalization is the logical next step for hoteliers in 2026.

For many consumers, especially with higher incomes (who continue to perform strongest in the current market) the unique experience is quickly becoming a non-negotiable part of a stay.

This creates clear opportunities for accommodation providers to design and promote more specialized experiences.

While this might be bespoke at the higher end of the market, others can still lean into this trend by making inventory more dynamic - from more customizable room options to targeted ancillary options.

Delivering this level of personalization requires granular data. Hotels need to move beyond broad market insights and into deep segmentation. Understanding not only who your guests are, but how they book, what matters to them, and where they spend.

This depth of insight facilitates a shift toward Attribute-Based Selling (ABS). As PhocusWire notes, ABS allows you to unbundle rooms into specific purchasable features, such as floor level, view, or workspace availability.

This turns static room types into dynamic inventory, letting guests pay for the specific attributes they value and opening up meaningful revenue opportunities for hotels.

11. The era of connected hotel technology

The personalization mentioned above is just one advantage of a connected hotel tech stack. The broader value lies in eliminating the cost of disjointed data – a problem that silently undermines hotel commercial strategy.

Most hotel tech ecosystems are a complex tapestry of disconnected PMS, RMS, marketing tools, and various third-party systems. When these platforms do not speak to one another, they create data silos where teams work from conflicting numbers.

Instead of focusing on demand generation or strategic decision-making, teams spend hours reconciling spreadsheets and piecing together fractured insights.

To succeed in 2026, hotels must reimagine their stack to establish a single source of truth, where data is in real-time, collected across the business, automated in its capture and analysis and accessible across all departments.

A unified platform allows every commercial function – revenue, sales, distribution, and marketing – to work from the same information and shift from manual data pulling to high-value action.

To capture demand on emerging channels, improve operational efficiency, and deliver personalized offers, hoteliers must embrace this level of connectivity.

Silos limit speed and in a year defined by rapid market shifts and increasingly automated search and booking journeys, speed is becoming a competitive advantage

Actionable strategies for hoteliers in 2026

The travel and hospitality industry remains resilient as ever, but has gained layers of complexity.

Travelers are changing their habits to manage rising costs and geopolitical headwinds. Simultaneously, AI and evolving distribution channels are reshaping how trips are booked.

Success now hinges on visibility and agility. In 2026, market leaders will be those who leverage high quality data to anticipate demand and target travelers wherever they plan and book.

To help you translate these trends into opportunities, here are practical priorities to take into 2026:

Utilize forward-looking demand data to combat instability

A volatile travel market makes historical data unreliable. Switch to forward-looking intelligence that tracks real-time flight and search data, so you can spot demand shifts instantly and adjust pricing before competitors react.

Align with new demand patterns and value expectations

Traditional seasonality is changing. Re-evaluate your occupancy curves to spot peaks migrating into shoulder months, then adapt your pricing, restrictions, and promotions to capture this evolving demand.

Bridge the gap to AI travel planning

AI is already part of how guests plan, compare, and soon book. Don't let your property become invisible in this new era of hotel distribution. Implement a solution like Connect AI that enables AI agents like ChatGPT to read and book your hotel directly.

Be selective with your distribution channels

With bookings driven by OTAs, social media, and now AI agents, you can’t be everywhere at once. Map where your guests discover and book. Then prioritize the channels that drive profitability, while never losing focus on your direct channel.

Deploy Attribute-Based Selling

Meet the demand for hyper-personalization by unbundling inventory. Instead of selling generic room types, allow guests to pay for specific features (e.g., "high floor," "balcony"), increasing perceived value and ancillary revenue.

Connect your tech so every team sees the same picture

Aim for a single source of truth for your data. All commercial teams working from the same numbers. Replace spreadsheet-heavy tasks with automated workflows and shared views, so you spend time on analysis and action, rather than data collection.

How can Lighthouse support your 2026 strategy?

All of these priorities depend on one thing, a forward-looking view of your entire market, backed by clear, real-time signals.

You need to see how demand, pricing, short-term rentals and guest behavior are shifting, and you need a platform that ensures you can act swiftly, with confidence.

Lighthouse offers a connected, AI-powered platform, that empowers commercial teams to align on a single source of truth, anticipate demand, and execute revenue-maximizing strategies before your competition sees the opportunity.

With Lighthouse by your side, you identifying trends, and adapt to them. Click here to learn more.