ROME — The hotel and travel industry is pushed and pulled from two sides.
On one side is worry: Factors such as geopolitical uncertainty, increasing costs and concerns about overtourism are putting a damper on travel in some markets.
On the other side is opportunity: Plenty of global travelers still have a desire to jump headfirst into new cities, cultures, cuisines and experiences.
Mitigating the worries and strategizing around the opportunities is the ultimate challenge for hoteliers today, according to speakers at the recent Italian Hotel Investment Conference in Rome.
These forces “impact our behaviors and the immediacy of our thought patterns, which can lead to shorter lead times and shorter trips, too,” said Yannick Wagner, deputy chief development officer for premium, midscale and economy in Europe and North Africa at Accor.
Wagner said issues around sustainability increasingly are playing into where, how and why people are traveling and checking into hotels.
Gloria Guevara, interim CEO of the World Travel & Tourism Council and the former travel secretary in the government of Mexico, said the travel industry can react to competing industry "noise" better today because travel protocols and transportation systems are more aligned today than they were during the recovery period after the global financial crisis and even in the period after the COVID-19 pandemic.
“Today we have faster recoveries,” she said.
Even if travel is now regarded as a must-have or a must-do, it is a blessing that the hotel and travel industry allows crises to partly resolve themselves, said Dimitris Manikis, president of Europe, Middle East and Africa at Wyndham Hotels & Resorts.
“I was recently at our La Quinta by Wyndham Batumi hotel,” he said, referring to a 98-room property that opened in April 2025. “In the hotel were Israelis, Russians, Ukrainians. That is half the world’s problems in the lobby. The pandemic provided us with the realization of what is important in our lives. … Seventy percent of the photos on our phones are travel- and hospitality-related.”
Major challenges
The challenges for hoteliers are many, though speakers said they can turn into opportunities. Inflation, overtourism, labor shortages and unwelcoming attitudes are some major challenges.
“This generation is the first to be poorer than the last, and the industry needs to take note of this," Manikis said. "How many people in the next generation can afford €1,000 [average daily rate] in Rome? That is the question."
Speakers cited the fact that the number of luxury hotels in Rome alone has more than tripled in a decade.
“Luxury is only 10% of the world. Yes, that makes for an exciting time, but understanding what will happen in 10 years is the game-changer,” Manikis said.
Guevara said labor issues should top many hotel firms’ agendas. She said the hospitality industry during the pandemic lost 70% of its workforce and still today 90% of hotel jobs are guest-facing ones.
But the hotel labor issue varies across the globe, Wagner said.
“In Europe, yes, labor is a concern, but in other continents and destinations, [hotel careers] allow staff to socially elevate, but to help that there remains the need to make the industry attractive to potential employees. That is possible. We are flexible, adaptable and resilient,” Wagner said.
One out of every four jobs globally is travel- and tourism-related, “but soon that ratio will be one in three,” Guevara said.
She added hoteliers must educate people about any misinformation about hospitality.
“My 21-year-old daughter loves to travel, but my 19-year-old does not, believing what she hears that travel is damaging to the environment. We need to educate on the benefits,” she said.
Overtourism
ITHIC took place in Rome, a popular tourist destination this year in large part because of the Rome Jubilee, or Holy Year. The quarticentennial event coincided this year with the death of Pope Francis, and has drawn millions so far this year to Italy's capital.
Overtourism is often cited as a problem caused entirely by the travel industry itself, but Wyndham's Manikis said he believes some of that is exaggerated.
Rome and Italy are under pressure thanks to their unique offerings of culture, attractions, cuisine and more.
“The whole housing crisis is nothing to do with our industry, and we are not responsible for how expensive items are in the supermarket," he said. "In India, right now, there are 50 airports being built, and an airport could make a city a Tier 1 destination immediately.
“We are seeing more demand in the Nordics this year than ever as some guests do not want to sit on a beach in 45 degrees [Celsius]. Yes, some do, and in Greece we have extended the season to the end of November,” he said.
Solving overtourism issues requires planning between all stakeholders — governments, communities and private industry, Guevara said.
“Give everyone a seat at the table,” she said.