With hotel metrics down annually across the board, professionals in the hospitality and travel industries who need something to look forward to can check out Expedia Group's annual report of travel trends and top destinations.
This month on "Tell Me More: A Hospitality Data Podcast," special guest Brandon Ehrhardt from Expedia Group returns to the show to chat with STR's Isaac Collazo and CoStar's Jan Freitag about the new Unpack '26 report.
To set the scene, Collazo and Freitag explored the latest hotel performance data, pointing out that September's case looked expectedly bleak. Collazo said revenue per available room dropped 2.1% in September with flat average daily rate and a decline in occupancy.
"RevPAR has fallen for six consecutive months with this month's decrease — the largest of the [past six months] and the largest monthly drop in a non-recessionary period, excluding the pandemic," Collazo said on the show. "Occupancy [has fallen] for seven consecutive months, and it's only increased eight times since April 2023."
October should be better than September, even with the ongoing government shutdown, Collazo said, but Freitag reminded listeners that the fourth quarter has a tough comparison to last year.
One small positive within September's numbers was group ADR, Freitag said.
"Group room rates continue to be quite positive. In September, group ADR was up over 3% at 3.2%. That's the sixth continuous month of ADR growth — call it at the level of inflation, maybe a little bit above that, but group demand continues to fall," Freitag said. "So, there's this interesting juxtaposition between demand down and ADR up. One of them has to give eventually, and I'm afraid it's going to be ADR, but for now, that looks like a pretty healthy performance on the group ADR side."
Travel trends for 2026
Earlier this month, Expedia Group released its Unpack '26 report, which highlighted trending destinations and other travel themes expected in the new year.
Ehrhardt, Freitag and Collazo discussed a handful of trends from the report, including:
- Hotel Hop: This is when travelers book separate accommodations within the same destination — whether that's for diversifying their experience or for cost-saving measures. Ehrhardt said this is especially popular in urban locations.
- Readaways and Farm Charm: Travelers are taking it slow, booking stays that align with nature and relaxation. "Farm charm is really about connecting with nature and just taking a step away from the busyness of the day. ... Readaways is another trend, and it's about really finding a vacation rental spot to just completely free your mind and to read a book," Ehrhardt said.
- Fan Voyage: Sports have consistently driven travel for fans across the world, but Expedia Group's report predicts local sports tourism spiking next year. From sumo wrestling in Japan to curling in Canada, 57% of travelers say they are interested in attending a local sporting event when they travel.
- Set-Jetting: Now a staple in the report, the trend of travelers adventuring to places they've seen on TV continues to drive tourism. "It's an $8 billion a year industry," Ehrhardt said. "This is the Gen Z and millennial sweet spot. Eighty-one percent of those travelers in those demographics are looking for inspiration on the silver screen or the TV screen."
Also in this episode
- Ehrhardt explains the report's new partnership with the World Travel and Tourism Council to provide a Smart Travel Health Check to ensure that the travel destinations mentioned are empowering communities and not promoting overtourism.
- Considering the U.S. rhetoric toward Canada this year, Freitag and Collazo ask Ehrhardt about trends and popular destinations across the region.