In this post we will take a look at some of the trends and challenges that hotels may have to deal with in 2026. We will also explore how hotels and other hospitality businesses may manage and mitigate these risks.
Key Risks Facing Hotels
In 2026, we expect to see a range of risks continuing to impact the hospitality industry. In particular, we expect to see hotels continue to face the following challenges:
- Cyberattacks
- Rising Costs and falling profits
- Staff shortages
We’ll look at these risks in more detail and explore what hotels can do to help mitigate the risk.
Cyberattacks for Client Data
Cybercriminals are getting smarter every year. Advances in artificial intelligence means that their cyberattacks are getting harder to detect, and harder to resist.
Hotels are prime targets for cybercriminals. Hotels store lots of valuable client data on their systems, and it is unlikely that your hotel staff will have received dedicated cybersecurity training to help them understand the risks.
How can your hotel meet the growing risk of cybercrime?
Through investing in staff training, and in advanced cybersecurity solutions. You could also acquire specialist cyber insurance. In the event of a cyberattack, cyber insurance can provide cover for customer data loss, for system breaches, and for any legal fees you might face following the incident.
Be sure to read our full guide to cyber insurance, and what it covers.
Rising Costs, Falling Profits
In recent years, hotels have struggled with rising energy prices and supply costs. And the problem is that guests are also feeling the pinch. If fewer people can afford holidays, then hotels across the world will see their profits tumble.
How can hotels mitigate the risk of rising costs?
There are a few ways in which hotels can stay afloat in this precarious economic landscape:
- Invest in sustainability. Prioritising sustainability can help you save huge amounts of money. It could also help you stand out in a crowded hospitality marketplace: According to one survey, 69% of all travellers are actively seeking more eco-friendly travel options. Read our full guide to hotel sustainability.
- Stay on top of maintenance. A good maintenance schedule will help ensure that everything in your hotel is running like it should, which could dramatically improve the customer experience. Ongoing maintenance could also help you avoid more costly repairs in the long-term. Read our full guide to hotel maintenance here.
- Offer something different. Customers are increasingly looking for personalised, experiential travel. So what could you offer your customers to help your hotel stand out? Think about spa treatments, local tasting menus, and unique activities or excursions. You could also look into the potential of AI to help you offer personalised customer service experiences at the point of booking.
Hotel Staff Shortages
Across the world, hotels are struggling to attract and retain the skilled staff they need to deliver exceptional customer experiences. Low wages, demanding working conditions, and a lack of career progression means that many have left the industry to look for better paid and less stressful opportunities.
How can hotels tackle staff shortages?
How can you recruit and keep talented workers in such an environment? Through endeavouring to be the best possible employer:
- Pay your staff as generously as you can. Also think about benefits, including healthcare, paid sick leave, pension contributions, and staff discounts. Yes, all of this will increase your overheads. But investing in your staff can lead to vastly improved customer satisfaction scores; while reducing staff turnover will help you make savings on recruitment costs.
- Think about the work/life balance. Hotels run round the clock, which can lead to unpredictable rotas and unsociable hours. Consider ways you can help your staff manage these demands, such as through flexible hours, job sharing, time-off-in-lieu, and so on.
- Aim to create a culture of open communication. Encourage your staff to talk about their concerns, and you may be able to intervene and offer solutions before any serious problems arise. Your frontline staff may also have some great ideas on how you might improve your hotel’s overall operational efficiency too.
Will Your Hotel Insurance Give You The Cover You Need in 2026?
Finally, as we enter the new year, it may be worth reviewing your hotel insurance to ensure it is still giving you the cover you need. The risk landscape for hotels is changing all the time, so a “comprehensive” policy from a few years ago may not necessarily cover you for all risks today.
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance specialists. We are committed to protecting your hotel, your staff, and your guests from every risk you might possibly face in 2026 and beyond.
Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.