Rising APAC demand, short-term rental competition, and the rise of AI planning tools are reshaping distribution and guest acquisition
Dec 11, 2025
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.
Get the full story at Phocuswright
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