I N T R O D U C T I O N T100IndustryChallenges VERSION 1|PUBLISHED:MAY14, 2026 Members of the T100, the hotel industry’sglobal technology leadership group, convenedto distill a list of the most pressing challengesfacing the hotel industry. The list recommendsfocus areas for both hoteliers and technologyvendors. Assembling a list of problems was notenough; the T100 also suggested areas whereindividual companies may benefit from furtherassessment. The goal is to keep hoteliers andvendors thriving as the technological landscapeand consumer behavior changes. AHLA/HTNG DOES NOT PROVIDE LEGAL ADVICE OR REPRESENTATION TO ANY INDIVIDUAL PERSONS OR MEMBERS. TOTHE EXTENT THIS RESOURCE CONTAINS INFORMATION ABOUT THE LAW THAT IS DESIGNED TO HELP THE RECIPIENTUNDERSTAND OR ADDRESS HIS OR HER OWN LEGAL NEEDS, SUCH INFORMATION DOES NOT CONSTITUTE LEGAL ADVICEOR REPRESENTATION BY AHLA/HTNG. EACH INDIVIDUAL AND BUSINESS IS RESPONSIBLE F OR ASSESSING, UNDERSTANDING,AND PREPARING F OR USING AI TOOLS AS THEY DEEM APPROPRIATE. MEMBERS SEEKING SPECIFIC LEGAL ADVICE WILLFIND ADDITIONAL RESOURCES AT WWW.AHLA.COM/ALLIEDATTORNEY. AHLA/HTNG DO NOT F ACILITATE AND MEMBERSSHOULD NOT DISCUSS OR AGREE ON ROOM RATES, PRICE F ORMULAS, DISCOUNTING PRACTICES, CAPACITY/INVENTORYDECISIONS, CHANNEL RESTRICTIONS, COMMISSIONS, OR OTHER COMPETITIVELY SENSITIVE TERMS. ALL COMMERCIALDECISIONS REGARDING PRICING, AVAILABILITY, AND DISTRIBUTION MUST BE MADE INDEPENDENTLY BY EACH COMPANY. INDUSTRY CHALLENGE Capitalizing on generativeand agentic AI to grow directbooking levels while enabling new revenue opportunities Hotel companies are at a pivotal moment: emerging technologies—such as conversational tripplanning, agent-to-agent (A2A) bookings, and intelligent messaging platforms—are reshapingdigital travel behavior. These innovations create an opportunity to protect and strengthen directbooking performance and deliver seamless, personalized guest journeys. Success requires more than acknowledging these tools exist; it demands rapid, intentional action. Byembedding generative and agentic AI throughout the booking lifecycle, hotel companies can unlockgrowth through personalized merchandising, dynamic offers, and loyalty engagement. The questionfor 2026 is simple: who will move decisively and lead this new era of AI-driven commerce? SUGGESTED AREAS OF FOCUS Data Preparedness for AI To fully capitalize on AI-driven opportunities, hotels must invest in foundational data work. Thisincludes unifying guest databases, improving data cleanliness, and structuring both static anddynamic content. Without strong data foundations, AI capabilities will remain limited or unusable. Optimize Content for AI Search, Not Just Google Large Language Models (LLMs) are reshaping how travelers research by enabling threaded,conversational searches. Hotels must ensure their answers to high-funnel questions areauthoritative, accessible, and easily crawlable by LLMs. Key actions: ■Ensure LLMs and search agents can easily traverse first-party content.■Own destination, neighborhood, and event-related content.■Provide high-quality English-language content even in non-English markets.■Allocate small, experimental budgets to emerging AI discoverability tactics, with tightlydefined goals and measurement windows. Prepare for Agent-to-Agent (A2A) Bookings While vendors will lead the development of A2A booking infrastructure, hotel companies mayindependently consider: ■Assessing how distribution partners are approaching A2A integration and what that means foreach company’s own booking strategy.■Exploring pilot opportunities with technology vendors on terms each company negotiatesindependently.■Ensuring direct booking flows are technically accessible to emerging AI-based travel planningtools (including LLMs), consistent with each operator’s own distribution strategy.■Engaging with technology providers and policymakers in their individual capacities to promoteconsumer-friendly technology development. INDUSTRY CHALLENGE Declining RevPAR growth and rising global expenses arecompressing margins, requiring bold initiatives in costefficiency and new revenue generation Hotels face dual pressures: slowing RevPAR growth and escalating costs across labor, utilities,compliance, and supply chains. This margin compression impacts profitability and limits reinvestmentcapacity.To remain competitive, hotel companies must adopt new strategies that expand marginsthrough efficiency, automation, and diversified revenue streams. The path forward requires reimagining both sides of the margin equation: lowering the cost to serveand increasing wallet share. Leaders who act boldly and innovate in 2026 will establish a sustainablefoundation for growth. SUGGESTED AREAS OF FOCUS Reduce Customer Acquisition Costs Drive more repeat guests to book direct by:■Capturing accurate guest information during the stay. ■Encouraging loyalty enrollment.■Engaging guests with targeted, personalized post-stay