It’s predicted to be a strong year of expansion for the sector, with accommodation and food services growth forecasts revised upward to 2.5%.
Hospitality industry trends indicate that the most successful operators in 2026 will be those who take sustainability seriously and keep up with new technologies that are fundamentally reimagining the guest experience.
State strategies reflect this momentum. Destination NSW targets $91 billion in visitor expenditure by 2035, while Victoria’s Visit Victoria 2030 aims to build a $53.4 billion visitor economy. This growth is expected to create 150,000 new jobs and over 40,000 new hotel rooms, which is good news for those eyeing a career in hospitality.
Emerging trends in the hotel industry
Current hotel industry trends are centred on sustainability, wellness, digital evolution, agentic AI, mobile-first booking and authentic tourism experiences.
Repeat customers driving bulk revenue
Financially, the market is robust. International visitation is forecast to exceed pre-pandemic levels in 2025, and investor interest remains high with transaction volumes up 42%.
This growth environment prioritises profitability and loyalty, often explained by the 80/20 rule (Pareto Principle). In 2026, this concept remains critical: roughly 80% of a hotel’s revenue comes from 20% of its guests, specifically the loyal, repeat clientele who book directly. Smart operators are focusing resources on retaining this high-value cohort rather than constantly chasing new, one-time acquisitions.
By focusing on Lifetime Value (LTV) rather than just occupancy rates, managers can identify the guests who not only return but also advocate for the brand, effectively lowering the cost of acquisition over time.
Sustainability is no longer negotiable
The industry is currently shaped by high-value simplicity and a move towards regenerative practices. The emerging trend is that sustainability has evolved from a basic expectation to a ‘net-positive’ requirement. Hotels are now adopting regenerative hospitality approaches, where operations actively restore local ecosystems rather than just limit their damage.
This goes beyond removing single-use plastics; it involves modern approaches like ‘Green Hushing’. This is where hotels implement rigorous sustainability measures without broadcasting them, simply because it is the right thing to do.
Sustainability initiatives that many hotel businesses are implementing in 2026 include:
- Partnering with local conservation projects
- Offering guests opportunities to participate in citizen science initiatives
- Utilising renewable energy sources exclusively
- Implementing rigorous waste reduction and composting programs
- Sourcing all food and amenities from ethical, local, and sustainable suppliers.
- Transparent reporting on environmental impact metrics
- Actively supporting the socio-economic well-being of the surrounding community through fair employment practices and investment in local infrastructure.
Guests are savvy and can spot greenwashing from a mile away and demand transparent, verifiable impact.
The Resurgence of 'Bleisure' 2.0
The lines between business and leisure have blurred permanently. The “Bleisure” travel market is projected to reach massive heights, growing at a compound annual growth rate of over 12% through to 2034. In the Asia-Pacific region, a striking 76% of business travellers now plan to combine business trips with personal leisure. This fundamental shift in corporate travel culture is significantly impacting booking patterns and guest priorities.
For hoteliers, this means the “corporate guest” is no longer just looking for a desk and a strong Wi-Fi signal. They are looking for “frictionless” transitions - spaces where they can take a private Zoom call at 4 PM and be in the pool by 5PM. Hotels are adapting by offering co-working lobbies that rival dedicated office spaces and extending “stay and play” packages that incentivise adding a weekend to a mid-week conference.
Cybersecurity is the new safety deposit box
With more mobile transactions and AI-driven personalisation comes a new responsibility: data protection. In 2026, with more travellers bringing their work with them, cybersecurity needs to become a brand pillar.
With the rise of the digital nomad and bleisure traveller, more guests want to both connect and disconnect on their holiday. It’s not only about your business’s cybersecurity, but also your guests’. Awareness of the risks of public WiFi are increasing, so hotels and hospitality businesses offering it as a benefit need to take appropriate measures to provide cyber safety.
The average cost of a data breach has skyrocketed. Trust is the new currency, and securely managing guest data is becoming a customer priority.
Hotels that can demonstrate robust data ethics, multi-factor authentication for guest portals, and transparent privacy policies will win the trust of the privacy-conscious traveller. It’s about reassuring the guest that their passport details are as safe as their luggage.
Wellness and no-alcohol experiences
Health is a major driver of hospitality trends in 2026. We are seeing a surge in demand for wellness-focused amenities, from sleep tourism (specialised beds and lighting) to gut-friendly menus. Yet, the focus is shifting beyond consumption to activity. Guests are increasingly seeking “social wellness” - opportunities to connect with others in environments that don't revolve around alcohol. We are seeing a move towards active recovery and community-driven experiences, such as run clubs at sunrise, communal ice bath sessions, and mindfulness workshops, replacing the traditional happy hour.
Supporting this shift is the Low and No Alcohol (NoLo) category in bars and restaurants. This is becoming more than a fad and turning into a genuine revenue stream. With Gen Z drinking significantly less than previous generations, forward-thinking venues are curating sophisticated non-alcoholic lists that often feature native Australian botanicals like wattleseed or finger lime.
It allows guests to socialise without compromising their goals. Get this right, and your drink sales can turn into the kind of deep guest satisfaction and word-of-mouth referral that builds the high-value loyalty feeding your 80/20 rule.
Authentic local experiences are in demand
As global travel becomes more accessible, the desire for “authentic” local experiences has intensified. Guests in 2026 are moving away from cookie-cutter tourist traps and seeking local recommendations that can’t be found on a generic “Top 10” list.
The role of the concierge is evolving into a curator of experiences. Successful hotels are forging partnerships with local artisans, hidden bars, and underground tour operators to offer exclusive access that apps can’t replicate.
Guests in 2026 want to feel like an insider, not a tourist. Hotels that act as a gateway to the local community, rather than a fortress separating guests from it, will thrive.
Evolving travel booking behaviours
The ‘desktop safety net’, where guests browse on mobile but switch to a computer to book, has vanished.
In 2026, mobile booking revenue is projected to finally overtake desktop revenue.
The user experience gap between desktop and mobile has closed. Research shows that this shift is reinforced by mobile booking applications that significantly enhance convenience by streamlining the process and integrating real-time updates.
Travellers are far more confident exploring, choosing, and booking on the go. Findings indicate that social media and peer reviews are critical factors in building the necessary trust for wider consumer adoption. Hoteliers should upgrade mobile experiences across the entire booking journey to ensure they meet industry standards or risk being left behind.
Now that digital wallets have reached the point of one seamless click via services like Apple Pay (now an industry-standard integration for booking apps), users are much more confident finalising their booking on mobile. Hoteliers should plan for end-to-end mobile booking to become the preference and align their user experience accordingly.
The 7-day window and spontaneous travel
Booking lead times have collapsed. Global data indicates a massive surge in the “last-minute lifestyle”, with a significant percentage of bookings now made within a 7-day window of arrival.
This “spontaneous growth” means hotels must be agile, managing inventory dynamically to capture high-intent guests who book and stay within the same week.
This isn't just budget backpackers looking for a bed; the demographic has shifted up-market:
- Digital Nomads: Travelling remote workers are moving faster, seeking frictionless setups with reliable Wi-Fi and workspace on short notice. Stays of 1-3 months are most common, but they can cancel and move within days if their current environment lacks connectivity or community, or if a better option presents itself.
- Gen Z: This cohort is driving a trend of max adventure with minimum commitment, often booking spur-of-the-moment trips to “touch grass” or visit national parks without months of planning. This is particularly relevant to city kids looking for a change of scenery, or those living further away looking for accommodation for a festival or concert closer to the city.
- The “Impulsive“ luxury traveller: Surprisingly, high-end guests are now booking spontaneously to celebrate “small wins.” More travellers are saying that life's daily victories are enough reason to book a last-minute getaway and see the value in investing their winnings in travel.
Social search is now part of SEO
Social media platforms like Instagram and TikTok are a new storefront for hotels and tourism in 2026. A strong presence on social feeds is now just as critical as listing on Online Travel Agent (OTA) sites.
Guests are increasingly bypassing Google to search for hotels directly on social platforms. They want to see the “vibe” before they see the room rates. This behaviour is driving the trend of visual-first marketing, where the “Instagrammability” of a space is as critical as guest service. Elevating the look of your media and marketing on social media is proving to deliver a return on investment.
Forecasts suggest hoteliers must embrace these channels to stay ahead of competitors. If a guest can't visualise their experience through user-generated content or influencer reviews, they likely won't book.
The 5 C’s of Hospitality in the digital era
As booking behaviours become more digital, the human element of service becomes the differentiator.
The 5 C’s of Hospitality: Competence, Character, Commitment, Communication, and Collaboration, ensure that when guests do interact with staff, the connection is impactful. In an era of rapid mobile transactions, these qualities turn a simple stay into a memorable experience.
AI is enhancing personalisation
Artificial Intelligence is now the invisible engine of personalisation. Rather than replacing staff, “AI Agents” are being used to anticipate guest needs in real-time, handling complex tasks to elevate service quality. This technology allows for “intimacy at scale,” where data is used to ensure a repeat guest finds their favourite pillow or drink waiting for them upon arrival.
‘Invisible’ Operational AI will become more common
In 2026, AI has evolved beyond guest-facing chatbots to become the silent guardian of hotel infrastructure. We are seeing the widespread adoption of predictive maintenance, where AI monitors sensors to identify equipment failures, such as a slowing elevator or a leaking pipe. The AI then schedules repairs before a guest is ever inconvenienced.
This “invisible” tech extends to sustainability, with smart energy systems dynamically adjusting HVAC and lighting based on real-time occupancy to cut waste without compromising comfort. This is all to do with Agentic AI, where digital agents talk to one another to automate workflows, from restocking inventory to configuring rooms. This ensures the property runs flawlessly while human staff are freed up to focus purely on human connection.
Smart rooms, not complex rooms
The ‘Smart Room’ of 2026 has matured. We have moved past the gimmick phase where guests needed a manual to turn on the lights. The trend now is intuitive automation. Guests want technology that works without them having to think about it. Lighting that adjusts to the time of day (circadian rhythms), casting capabilities that let them watch their own Netflix shows instantly, and voice controls that actually understand accents.
Designers are starting to weave technology into the fabric of rooms: wireless charging surfaces are embedded in tables, and televisions are hidden in mirror panels.
The goal is to reduce decision fatigue. A truly smart room anticipates the guest's needs: cooling down before they arrive and dimming the lights as they wind down, rather than forcing them to fiddle with a complex control panel.
With AI, the 7 Pillars of Hospitality remain essential
To ensure technology aids rather than hinders the guest relationship, successful managers should apply the 7 Pillars of Hospitality: Self-Awareness, Guest Awareness, Connection, Authenticity, Anticipation, Alignment, and Presence.
These pillars remind us that while an algorithm can predict a guest's preference, only a present and authentic human can truly make them feel welcome.
