As hoteliers step into budgeting season, the focus is on preparing for another year of evolving guest expectations, rising distribution costs, and tighter margins. For 2026, successful budgeting won’t just be about cost control—it will be about investing in the right mix of channels, tools, and strategies that maximise profitability.
One thing is clear: reliance on OTAs continues to grow, but so does the cost. Commissions eat into margins, and hoteliers who don’t prioritise their direct booking strategy risk losing ground. That’s why this year’s budgeting exercise should put direct bookings front and centre.
Here’s your cheat sheet for creating a smart 2026 budget that sets you up for long-term growth.
1. Revenue Forecasting: Build Realistic Scenarios for 2026
Start with a clear picture of your expected revenue streams. Build three scenarios—conservative, moderate, and aggressive—so you can stay agile in response to changing demand.
- Base assumptions on actual occupancy and ADR trends from 2025.
- Factor in seasonal changes, group demand, and events in your market.
- Account for inflation and potential increases in OTA commission rates.
By working with flexible scenarios, you can make better-informed spending decisions and avoid surprises.
2. Channel Mix & Distribution Costs: Reduce OTA Dependence
One of the most overlooked areas in budgeting is the real cost of distribution. OTAs deliver visibility but at a price—often 15–25% in commission.
- Calculate your current OTA vs. direct booking split.
- Quantify what you’re paying in commissions and compare it to the cost of winning a direct booking.
- Set a target to grow your direct booking share in 2026.
Budgeting with distribution costs in mind will help you see where reallocating spend could save thousands in commission.
3. Direct Booking Investments: Secure Your Margins
Direct bookings aren’t free—but they’re far cheaper than OTA commissions when you use the right tools. For 2026, allocate budget for solutions that make your direct channel more competitive.
This includes:
- Personalisation tools that adapt offers to guest behaviour.
- Upselling and cross-selling features that lift revenue per booking.
- Automated engagement campaigns to convert more website visitors into paying guests.
Tools like Userguest are designed to help hoteliers win more direct bookings, reduce OTA dependency, and grow revenue—all without increasing staff workload.
Curious how Userguest can help you generate more direct bookings? Book a demo to see how it works.
4. Marketing & Digital Spend: Invest Where It Matters
Marketing is often one of the first areas to face budget cuts—but in hospitality, it’s one of the most powerful levers for driving direct bookings. Instead of spending reactively, set a clear marketing allocation tied to ROI.
Priorities for 2026 should include:
- SEO and content to capture organic demand.
- Paid campaigns on Google, Bing, and Meta that drive guests directly to your website.
- Retargeting strategies to re-engage past visitors.
💡 This is also where AdsPlus becomes a game-changer. AdsPlus is an AI-powered paid ads solution built for hotels, designed to help you:
- Increase visibility and reach the right audience.
- Boost qualified traffic directly to your hotel website.
- Beat OTAs at their own game.
With its intuitive interface, AdsPlus lets you manage Google, Bing, and Meta ads all in one place—no marketing expertise required. It’s like having a personal paid ads assistant at your fingertips, optimising campaigns in real time for maximum profitability.
Hotels using AdsPlus have achieved ROI over 15:1, a 25% increase in revenue, and 40% more new visitors—proof that smart, automated advertising is one of the most effective ways to fuel your direct booking strategy in 2026.
Check out these AdsPlus case studies.
5. Embracing AI: Don’t Get Left Behind
AI is no longer a futuristic concept; it’s rapidly becoming a competitive necessity in hospitality. In 2026, hoteliers who embrace AI will gain an edge in efficiency, personalisation, and profitability.
Budget areas to consider include:
- AI chatbots to handle guest queries instantly and free up staff time.
- AI-driven revenue management to adjust pricing and availability in real time.
- AI tools for sustainability, like minimising food waste or optimising energy use.
- AI-powered paid ads, where AdsPlus is setting the new standard.
What makes AdsPlus different is that it doesn’t just optimise campaigns blindly. By connecting directly to your hotel’s booking data, past performance, and seasonality trends, AdsPlus can:
- Identify new source markets you may be missing.
- Suggest budget shifts to channels and campaigns with the highest ROI.
- Continuously adapt to market conditions in real time.
And unlike most ad platforms, AdsPlus delivers 100% accurate tracking, so you know exactly where every euro goes and how much revenue it generates.
For hoteliers, this means less guesswork, smarter spending, and full confidence that your advertising budget is fuelling direct bookings, not just clicks. It’s not just AI – it’s the future of hotel paid ads.
6. Guest Experience & Tech Stack: Where to Allocate Budget
Guest expectations are rising, and technology has become a crucial part of the hotel experience. The right tools don’t just improve satisfaction—they also boost conversion and loyalty.
Consider budgeting for:
- Mobile-first booking engines with seamless UX.
- Data-driven tools for personalised offers and loyalty campaigns.
- Tech that integrates with your PMS and CRM to streamline operations.
- Emerging innovations like AI chatbots or smart upselling systems.
By investing in guest-facing and operational technology, you’ll improve efficiency and create more opportunities to drive direct bookings.
7. Measuring Success: KPIs for Hotel Budget Planning
A budget is only effective if you can measure the outcomes. Define clear KPIs that show whether your investments are working.
- Direct booking share
- OTA cost savings
- Website conversion rate
- ROI of paid campaigns
- Guest lifetime value
Schedule quarterly reviews to adjust spend dynamically. This ensures your budget stays responsive to market conditions and keeps you on track toward your direct booking targets.
Final Thoughts: Make Direct Bookings Central to Your 2026 Budget
2026 is shaping up to be another year of margin pressure for hoteliers. But while costs rise, opportunities exist for those who budget smartly. By prioritising direct booking tools and ROI-driven marketing, you can reduce OTA dependency, strengthen your profitability, and future-proof your business.
Every euro you invest in solutions like Userguest and our AI-powered product AdsPlus is a step towards higher margins, more loyal guests, and greater control of your revenue. This budgeting season, make sure your hotel isn’t just planning for survival – but for growth.