WASHINGTON, D.C.—Rising operating costs and ongoing staffing challenges remain top concerns for hotel owners nationwide, even as most expect travel demand in 2026 to remain steady compared with last year, according to the Front Desk Feedback survey from the American Hotel & Lodging Association (AHLA).
The survey of hotel owners and operators across the country highlighted continued pressure from higher supply, labor, insurance, and energy costs as the industry prepares for major global events, including the 2026 FIFA World Cup.
“Hoteliers are resilient, but the cost pressures they’re facing are very real,” said Rosanna Maietta, president and chief executive officer of AHLA. “From rising insurance and energy expenses to workforce shortages, hotels are navigating significant operational challenges. As the U.S. prepares to host global events like the World Cup, ensuring hotels have the workforce and resources they need will be critical to maintaining America’s leadership in travel and tourism.”
Financial Pressures
Hotel owners said that operating costs remain their biggest challenge. The most frequently cited financial pressures include:
- Cost of goods and supplies (71 percent)
- Labor costs (65 percent)
- Fluctuating demand and occupancy (59 percent)
- Utility and energy costs (50 percent)
- Insurance premiums (43 percent)
- Workforce shortages (42 percent)
Staffing shortages also persist across the industry. More than half of respondents reported that their properties are somewhat or severely understaffed. To recruit and retain employees, hotels are offering a range of incentives, including higher wages (70 percent), flexible scheduling (54 percent), hotel discounts (54 percent), and enhanced benefits (31 percent).
Travel Demand Expected to Hold Steady
Looking ahead, 39 percent of respondents said they expect 2026 demand to remain relatively stable compared with 2025, while 29 percent said they expect it to be somewhat stronger and 6 percent expect it to be much stronger.
With matches scheduled across the United States during the upcoming FIFA World Cup, many hotels are also beginning to track early booking trends. Nearly 20 percent of applicable properties reported bookings currently below expectations for 2026.
