Every year, the hospitality industry welcomes something new, always changing, driven by shifting consumer values, technological acceleration, and a quest for more meaningful engagement.

Looking back at 2025, it is clear that this year, too, has been a period of change and evolution for the industry. New tools transformed industry dynamics, new customer segments entered the market. And, amidst the fluctuations and the trends, hospitality kept growing, evolving and expanding.

Hospitality in 2025: What defined the industry?

Let us take a trip down memory lane through what this year has been like for the industry.

Luxury hospitality is evolving

Immersive hospitality experiences

Specialisation and diversification of services

Cloud-native, contactless and mobile tech

The indispensable human touch

Get your hospitality business ready for the new year. Contact IDS Next hospitality tech experts today!

Modern hospitality experiences are defined by more than just the price

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What is agentic AI?

To understand the change, let us first define the force driving it: agentic AI.

Unlike traditional AI (which analyses data) or even generative AI (which creates content in response to a prompt), agentic AI systems are designed with autonomy and purpose. Think of it as the AI moving from being a fast calculator or a clever writer to being a proactive, goal-oriented employee.

An AI agent operates by:

• Setting a goal: For instance, “Ensure Guest A has a perfect, personalised stay.”
• Planning: Breaking the goal into steps (check preferences, monitor in-stay feedback, suggest upsells).
• Executing actions: Taking real-world action across different software systems (PMS, CRM, Booking Engine) with minimal human oversight.
• Learning: Reflecting on the outcome to improve future actions.

This agency and independent task execution by AI agents is the key differentiator for simplifying the increasingly complex guest journey in the era of AI-driven hospitality.

Agentic AI and the guest journey

Agentic AI adds significant value by seamlessly optimising the guest journey with a greater degree of personalisation and proactive problem solving. For guests and staff alike, agentic AI acts as an invisible butler, ensuring every need is met before it even becomes a frustration.

• Pre-stay personalisation: An AI agent can analyse a guest’s booking history, loyalty status, and previous conversational data. Then it can proactively upgrade a loyal guest, schedule a preferred amenity (like a specific pillow), and send a perfectly timed, personalised check-in link—all without a staff member lifting a finger.
• Seamless in-stay service: A guest may message, “I need more towels and a dinner reservation for four at 9 PM.” An AI agent can instantly communicate the towel request to the housekeeping system, confirm it, and simultaneously check the availability and book the dinner reservation in the F&B management system. It doesn’t just reply; it executes across systems.
• Operational optimisation: Behind the scenes, agents can be utilised to manage housekeeping schedules based on real-time check-out predictions, adjust staffing levels in restaurants based on dynamic demand forecasting, and even trigger preventative maintenance alerts for in-room IoT devices. This frees up human staff to focus solely on empathetic, high-touch interactions.

What are AI search engines?

AI search engines are another major force impacting digital hospitality. They have fundamentally transformed the way travellers find and book hotels, restaurants, and other destinations. 

Traditional search engines provided a list of links (organic and paid), requiring the user to click, browse, and compare. AI search engines—like those using sophisticated generative models—provide a direct, synthesised answer and often include a dynamic, transactional booking component right on the search results page.

• From links to answers: A traveller searches, “Plan a 3-day family trip to Rome in November with a budget of $500/night.” The AI search engine doesn’t return 10 hotel links; it returns a full, actionable itinerary that includes a specific, available hotel suggestion, flight estimates, and activity options, all pre-vetted against the user’s constraints.
• Zero-click conversions: The goal is to facilitate a “zero-click” booking flow, where the user moves from query to conversion on the search results page or via a conversational interface, bypassing many traditional websites entirely. For hoteliers, this means the battle for direct bookings is moving to the surface layer of the search engine itself.

Recent development in the era of agentic AI

How hoteliers can adapt to agentic AI and search engines to maximise bookings

Hoteliers must view this era not as a threat, but as an opportunity to reclaim the direct guest relationship from intermediaries. Adaptation requires a strategic shift:

Become AI-ready with cloud-native infrastructure

It is important to unify data as agentic AI is useless with siloed data. Ensure your cloud-native PMS and CRM are integrated to provide a single, clean source of truth. To make sure your systems are ready to be commanded by an AI agent, choose tech vendors who prioritise open APIs and actively facilitate agent integration.

Optimise for conversational search (and schema markup)

To rank well in an AI search engine, your website content (rates, availability, amenities) must be in a structured, machine-readable format (e.g., Schema.org). This is how AI search engines pull accurate answers and booking details directly.

It is also key to focus on long-tail queries. Instead of optimising for “London hotel”, you can optimise for more specific questions the AI will answer. For example, “What is the best vegan-friendly hotel in London with an afternoon tea service?”

Deploy autonomous agents strategically

It is good to start with revenue. Implement an agentic Revenue Management System (RMS) that autonomously adjusts pricing and promotions based on real-time market signals to maximise RevPAR.

It is also important to empower the staff. Introduce internal AI agents to automate back-office tasks like invoice processing, inventory ordering, and staff shift planning. This frees staff to deliver the high-empathy service that drives loyalty.

Looking for AI-ready and futureproof hospitality tech? Contact us today

The future of hospitality is autonomous, intelligent and personal

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When guests are swarming your lobby, every front desk worker answering queries and calls, and there is a queue waiting to be checked in, it is obvious that the current system of work at your front office is not meeting the demand. But the solution is simple: A cloud-based reservation system designed to simplify operations, increase conversions, and give your team real-time visibility of every booking.

Cloud-based reservation systems are expected to dominate the hotel CRS (Central Reservation System) market with a 67.0% market share between the forecast period between 2025-2035. With most brands jumping on the bandwagon, it is time for hotels to migrate to a tool that can handle bookings, store guest data, and ensure real-time visibility of room inventory, all in one single platform.

What is a cloud hotel reservation system?

Key features hoteliers should look for in a cloud reservation system

The reservation software market is growing, and hoteliers have many options offered to them. Make sure the software you choose includes the following features.

1. Centralised control

While most software can help a property oversee its reservations, legacy systems and disconnected platforms often fall short of building connectivity across departments and outlets. A good reservation solution should be able to manage all hotel bookings centrally, instantly, and easily across your departments and teams. Additionally, when it comes to group or chain properties, this software should be able to communicate essential data across multiple outlets, providing the front desk with centralised oversight and control.

2. Seamless integrations

A hotel technology solution is as good as its integration capabilities. Seamless integration with various other systems and third-party platforms builds effective communication between multiple departments within your property. This means that all necessary guest information is effectively communicated across the hotel’s tech ecosystem; the property management system, POS touch points, housekeeping, guest service software, booking engines, channel managers, and OTAs. Undisrupted data flow between multiple systems makes accurate information accessible to the decision makers, providing a holistic view of operations, guest needs, and areas for improvement.

3. Flexible payment processing

63% of travellers say that having a range of payment options, including digital wallets and ‘Buy Now Pay Later’, influences their decision to book directly, reveals the Worldpay Global Payments Report. This is an opportunity you can easily tap into with the right tools. Invest in a reservation system that makes payment processing easier for your employees and the guests. Think of a system that can handle multiple payment methods and currencies while maintaining transaction security, PCI compliance, pre-authorisations, and other regional cybersecurity requirements. 

4. Smart revenue management

With access to key reservation data—booking trends, occupancy rates, and demand patterns—a central reservation system supports a business to create data-driven pricing strategies. This allows you to optimise rates based on real-time market conditions, ultimately boosting profitability. Additionally, integrated with multiple distribution channels, this centralised reservation system can widen the reach of your hotel brand, connecting your rates and room availability across all platforms. The result? Heightened exposure, more guests and consequently, more bookings and revenue.

5. Mobile-first operations

As the saying goes, the front desk never sleeps. Your team needs access to reservation data 24/7 so that every booking, rate adjustment, and guest request is addressed immediately. For this, you need a modern system that meets modern-day demands; that is to say, you need a hotel reservation system compatible with mobile devices and not limited to desktop applications. This mobility and on-the-go access can improve response times drastically, helping you to maximise efficiency, accelerate service, and even capture any last-minute bookings that come your way.

6. Real-time insights

In an age where data is the new oil, the right software enables businesses to harness that data right. From recording visitor behaviour and preferences to helping employees accurately analyse demand patterns, a good cloud software like IDS Next’s FX Central Reservation System allows businesses to make sense of raw data and convert that into actionable insights. This means leveraging data to customise rates, marketing strategies, and operational approaches to meet the specific needs of an audience, optimising personalisation and improving operations.

Transform how your front office works. Schedule a demo now and see how smarter cloud reservation software can change your hotel operations

Direct bookings can deliver 9–20% higher profit margins than OTA bookings

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Social media and F&B marketing

A strong digital presence is a non-negotiable for modern diners and restaurants in order to build a positive relationship with the client base. Which, according to Forbes, means 71% of those polled would recommend a restaurant with an active, engaged social media presence. Customers will discuss your restaurant, and maintaining an active digital presence allows you to shape that narrative while boosting brand reputation.

The impact is clear, as highlighted by these restaurant social media statistics:

Source: Media Village

For F&B brands, the numbers signify how social media marketing is now an essential tool for staying competitive.

Prepping for the viral era

Mastering the social-media-driven era as a restaurant business requires a strategic, tech-enabled approach.

1. A comprehensive multi-platform presence

It is useful to set up dedicated profiles for all your locations on the big social platforms: Meta platforms (Facebook, Instagram), X (formerly Twitter), TikTok, and YouTube. This provides crucial touchpoints to deliver information, showcase your restaurant’s best features, and give customers a space to leave feedback. Consistency across all platforms is key to a positive brand image.

2. Data-driven campaigns (POS-linked targeting)

This is where the future of F&B marketing lies. If your Point-of-Sale system integrates with marketing tools, you gain the ability to segment guests and precisely retarget them with content. For example:

• Re-promoting a specific seasonal dish a guest previously ordered.
• Sending an offer to loyal customers who have not visited in a while.
• Targeting high-value customers with exclusive new menu previews.

POS-linked targeting makes your social media more personalised and powerful. Platforms which integrate marketing features with your POS can help you connect bookings, orders, and revenue in one place. The visibility makes it easier to understand your guests and run high-impact campaigns.

3. User-generated content incentives

USG can be your most trusted and cost-effective marketing asset. Optimise it with simple yet effective strategies, such as:

• Designating a “photo corner” with aesthetic lighting and branding.

• Running giveaways and encouraging patrons to post pics at your restaurant with a designated hashtag.

•  Actively monitoring and reposting the best UGC to your official profiles with permission and proper credit.

4. High-quality visuals and storytelling

In a visually saturated market, high-quality, aesthetic photos and reels are indispensable. Invest in professional photography for the venue interior and key menu items. Beyond static images, also focus on behind-the-scenes videos that showcase the passion and the craft. Give the audiences a sneak peek and connect with them emotionally via authentic, personal storytelling to nurture brand loyalty.

5. Prompt and professional engagement

A social media page is the brand’s public face. Customers will certainly discuss your restaurant, the food, the service, and every detail of their experience. You must maintain control of your reputation by:

• Promptly responding to all comments and reviews (both positive and negative).
• Having a clear, pre-approved protocol for handling online complaints and taking service issues offline quickly.
• Using your social channels to proactively communicate operational changes, like opening hours or specials, to minimise customer frustration.

6. Short-form video content

Platforms like TikTok and Instagram Reels dominate engagement. Short-form video is now the quickest way to go viral and reach new demographics. Focus on quick, energetic clips that show:

• “How-to” or “satisfying” food preparation (e.g., plating a dish or making a cocktail).
• Staff personality (i.e., a quick, fun introduction to the chef or barista).
• Special deals or time-sensitive offers presented in a creative, trend-based format.

7. CRM integration for personalised outreach

Move beyond basic social media management by integrating your Customer Relationship Management system with the brand’s social channels. This allows you to track customer interactions, preferences, and visit history directly. With this unified data view, you can:

• Automate personalised follow-up messages to guests after their visit, soliciting feedback and encouraging them to share their experience online.
• Identify and reward top social engagers or ‘ambassadors’ with exclusive content or offers.
• Sync social media lead data (i.e., from an Instagram contest entry) directly into your CRM for highly targeted marketing communications. This deep integration ensures your social strategy is continuously fed by customer data.

Master F&B operations in the digital era with the right restaurant tech. Get in Touch

F&B success: A dish best served digital

Social media is not a fleeting fad but a powerful and permanent force reshaping the modern restaurant industry. By implementing these strategic, data-driven approaches your business too can play the social game right and win the loyalty of a wide audience. Thus, turning ‘likes’ and ‘shares’ into a digital recipe of success for a thriving, profitable business.

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The world gathered to commemorate World Tourism Day on 27 September, a day dedicated to raising awareness of the importance of tourism and its social, cultural, political, and economic value.

This year, the theme was Tourism and Sustainable Transformation, encouraging travellers to be mindful and purposeful with their travel practices. This means eco-friendly accommodations, reducing waste and respecting local customs. With that, it is essential that we question how stakeholders can contribute to ethical transformation. And more specifically, what role technology plays in building a sustainable and resilient tourism industry.

What is the world tourism outlook in 2025?  

What is sustainable tourism?

This year’s theme is a clear indication of the growing need to rethink the sector in the context of global changes such as climate change, inequality, and digitalisation. To focus on sustainable tourism, then, is to combine many factors, from people-centric planning, education and skill development to responsible innovation:

• Environment, sustainability and governance (ESG)

• Investing in skills, including labour, technology training and socio-emotional awareness

• Inviting the contribution of youth, women and communities at risk

• Encouraging responsible use of natural resources  
• Technology-centric business models

Digitalisation and innovative business: where does technology step in?

Sustainable tourism is more than simply eco-conscious travel. It is also the responsibility of hospitality service providers, including hotels, resorts, clubs, restaurants, wellness businesses, technology vendors, and governing authorities. Here are the major ways in which technology drives sustainable tourism.

Smart resource planning

Smart solutions carefully monitor resource usage, from inventory tracking and streamlined procurement to smart material management, allowing better oversight for hospitality businesses. Think of IoT systems that can be integrated with your hotel ERP to track energy and water usage or inventory software that tracks food consumption. With access to real-time, accurate data, hotels can curb overconsumption, optimise purchase orders, and implement effective energy strategies, driving both cost savings and environmental benefits.

Data-driven capacity management

On a large scale, open data platforms like the European Data Portal offer access to public datasets that help destinations plan smarter and more inclusive tourism strategies. On micro levels, hospitality ERP provides the same kind of insights to properties, recording information on real-time occupancy and demand forecasting, which helps a business identify how guest behaviour impacts operations, the economy and the environment. Businesses can then plan crowd management procedures and implement targeted campaigns to promote tourism during off seasons, reducing overtourism that negatively impacts the environment.

Guest engagement and collaboration

Sustainability is a collaborative effort of all parties involved in the tourism sector. With the help of guest engagement technology, your hospitality brand can engage guests in sustainability initiatives, gathering real-time feedback on consumption and making them more aware of their environmental impact. Integrated loyalty programmes can be used to reward sustainable guest behaviour, further incentivising guest and traveller contribution to sustainability efforts.

Uplifting local economies

Using the right procurement and inventory solutions for vendor management will prioritise local suppliers, farmers, and artisans, uplifting local economies. When a business sources locally, it minimises their environmental impact by reducing transportation emissions and packaging waste, and has greater control over supply chain management. Partnerships with local tours, artists and events also create a sustainable way to attract better revenue into local destinations. It is a way to fuel local economies without placing undue strain on local resources.

Chain-level awareness and education

Lastly, there should be awareness building throughout the hospitality community, starting with your employees. Hospitality training that promotes sustainability empowers hotel staff to adopt eco-friendly practices into daily operations, instilling a culture of environmental responsibility and getting their active participation in brands’ ESG frameworks. When adopting digital solutions, adequate training is also a must, so employees can make optimal use of new resources. Training, awareness and knowledge-sharing make hospitality workers better prepared to  uphold sustainability goals and support guests to continue to do the same.

Empower your hotel operations and grow sustainably with IDS Next digital solutions. Request a demo today.

“Tourism is not just about visiting beautiful places…

It is about creating positive change, protecting our planet, and enriching lives.”, shared Dato Sri Tiong King Sing, Minister of Tourism, Arts and Culture of Malaysia, ahead of the 7th World Tourism Conference that took place this year in Melaka, Malaysia.

It is a timely reminder to all of us that sustainable growth in tourism and hospitality means innovating with responsibility and adapting the right tools and techniques into current operations and procedures.

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