As the hospitality industry looks ahead to 2026, one theme is becoming unmistakably clear: the way hotels generate, manage, and optimise revenue is undergoing a fundamental shift. In a recent discussion as part of a 2026 “crystal ball” predictions series, Andrew Rubinacci of Flyr Hospitality, one of our Expert Partners, shared several perspectives that should resonate strongly with hotel general managers and revenue leaders alike. While no prediction is guaranteed, the signals are strong enough that they demand attention today.
Here is the full interview and we have summarised some of the key points below.
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1. AI Will Finally Enable True Total Revenue Management
Total revenue management has been discussed for well over a decade, yet most hotels remain heavily focused on rooms revenue alone. The reality is that many revenue managers are still performing tasks that have changed little in the last 20 years, largely because of fragmented systems and manual processes.
By 2026, AI-driven platforms are expected to meaningfully change this dynamic. Automation will increasingly handle forecasting, pricing recommendations, and data consolidation, freeing revenue leaders to focus on insights and strategy. This shift creates an opportunity to optimise the entire asset – rooms, food and beverage, spa, cabanas, parking, and ancillary services – rather than treating these revenue streams in isolation.
For owners and operators, this is not just about incremental revenue. When the right product is offered at the right price and time, guest satisfaction improves alongside profitability. AI is not the strategy itself, but it is becoming the enabler that allows hotels to finally act on a total revenue vision.
2. Profitability Will Take Centre Stage as Rate Growth Plateaus
The post-pandemic period delivered extraordinary rate growth, but many markets are now approaching a ceiling. While demand remains relatively stable, operating costs – labour, food inputs, and services – continue to rise. The result is margin compression.
In this environment, the focus is shifting from “maximum revenue” to “profitable revenue.” Forward-thinking revenue teams are beginning to evaluate cost of sale, cost of service, and contribution margins at the reservation level. This applies not only to rooms, but also to group business, F&B, and ancillary offerings.
Dynamic or semi-dynamic pricing will play a larger role, particularly outside of rooms. Seasonal and demand-based adjustments for restaurants, banquets, and resort amenities are becoming more feasible thanks to digital menus, POS integrations, and QR-based ordering. While guests may not accept daily price fluctuations in all settings, thoughtful, transparent pricing strategies can protect margins without damaging trust.
For general managers, the implication is clear: profitability analytics can no longer be optional. Whether through advanced systems or disciplined manual analysis, hotels must understand where profit is truly being generated – and where it is not.
3. Labour Roles Will Evolve, Not Disappear
Labour remains one of the industry’s most pressing challenges, and AI will undoubtedly reshape hotel roles over the next few years. However, the narrative that “AI will take jobs” oversimplifies reality. Roles will change, some entry-level tasks will disappear, and entirely new functions will emerge.
Front-of-house and commercial teams are likely to become more multi-skilled, supported by technology that removes administrative drudgery. Revenue analysts, for example, may give way to strategy-focused commercial managers who rely on AI-generated insights rather than manual reporting. In limited-service environments, staff may increasingly act as guest concierges empowered by intelligent systems, enhancing service without materially increasing labour costs.
The larger challenge lies in talent development. As traditional entry-level roles decline, the industry must rethink how it trains and mentors future leaders. Strategy cannot exist without foundational understanding, and hotels will need new pathways to develop that expertise.
Looking Ahead
By 2026, hotels that succeed will be those that embrace AI as a productivity tool, refocus revenue management on profitability, and proactively redesign roles and career paths. For general managers and commercial leaders, the next few years represent not just change, but opportunity – if the industry is willing to act decisively.
