Trying to predict the future of hospitality in 2026 can feel like staring into a cloudy crystal ball. Rapid technological change – particularly in artificial intelligence – has made long-term planning more complex than ever. Yet, despite the uncertainty, several clear themes are emerging that hotel general managers and revenue leaders should already be factoring into their strategies.

We asked Kris Glabinski of Aggregate Intelligence to outline his thinking on some of the core issues he feels could signifacntly influence the hotel industry next year.

Here is the full interview and we have summarised some of the key points below.

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Based on current momentum, three major forces are set to shape hotel performance over the next few years: the maturation of generative AI, a reshaping of distribution and direct bookings, and the continued evolution of revenue management and business models.

1. Generative AI Becomes Ubiquitous – And Riskier

Generative AI and large language models (LLMs) have moved quickly from novelty to commodity. Most hoteliers are now familiar with tools like ChatGPT, and adoption is spreading across departments. By 2026, AI will be deeply embedded in hotel workflows, particularly in marketing, guest communication, and research.

Marketing is already the most advanced use case. AI-driven SEO, keyword positioning, and content creation are delivering meaningful cost savings while improving conversion rates. Hotels are also beginning to adapt their marketing strategies for AI-powered search, ensuring visibility not just on Google, but within LLM-driven recommendations when travelers ask for “the best hotel in a destination.”

AI-powered chatbots are another major growth area. Traditional website chat boxes are being replaced with LLM-driven agents capable of holding natural conversations, building trust, and driving direct bookings. However, success depends entirely on training and control. LLMs are excellent at sounding confident – even when they are wrong. Without proper guardrails, hotels risk “hallucinations” that misrepresent pricing, policies, or products, leading to poor guest experiences and flawed business decisions.

The conclusion is simple: AI is powerful, but only as good as the data and governance behind it.

2. Distribution Shifts Toward Personalization, Not Elimination

The second major trend is the growing focus on direct bookings alongside more complex distribution. While every hotel wants to increase direct share for cost and loyalty reasons, OTAs and metasearch platforms remain indispensable demand generators. This is not an either-or equation.

What is changing is how guests search and decide. LLM-powered discovery allows travelers to compare more sources faster, flipping between OTAs, hotel websites, and alternative platforms. Hotels that invest in stronger, more personalized content stand to benefit.

One emerging concept is the idea of the “why vacation” – the reason a guest chooses one hotel over another. AI excels at articulating uniqueness, tailoring messaging by segment, and creating emotionally compelling narratives. Hotels that leverage AI to define and distribute their “why” across channels will be better positioned to win both visibility and conversion.

At the same time, price integrity becomes harder to manage. With content and rates flowing through dozens of channels, monitoring parity across room types, rate plans, and offers is increasingly complex – yet more critical than ever.

3. Revenue Management Evolves Into Real-Time Decision Making

Revenue management is entering a more dynamic era. While daily or weekly price updates provide a baseline, they are no longer sufficient in a marketplace where booking decisions happen continuously. By 2026, reactive and near-real-time pricing will become far more common.

However, full black-box automation remains a barrier for many small and mid-sized hotels. The future lies in transparent, intuitive systems that empower revenue managers rather than replace them. Technology will increasingly support faster, more granular decisions – responding to demand shifts minute by minute.

Overlaying all of this is a broader business model shift, with more independent hotels affiliating with global brands. These partnerships provide access to technology, systems, and revenue expertise that individual hotels would struggle to develop alone, accelerating commercial maturity across the sector.

Final Thought

The crystal ball may be hazy, but the direction is clear. Hotels that invest in data quality, content, pricing agility, and strategic use of AI will be far better prepared for 2026 – whatever surprises it brings.