Learn From My Selection

Rising travel costs and changing demand patterns are putting pressure on middle-class travelers in the hospitality industry. While luxury and premium segments continue to perform well, midscale options with higher prices are making it harder for average-income travelers to afford stays who end up reducing trip duration, choosing alternative destinations, or taking advantage of promotions.

Travelers in 2026 are increasingly booking directly, utilizing loyalty programs to offset rising accommodation costs.  Despite higher accommodation expenses, overall travel demand remains strong, as travelers are reallocating funds to experiences, dining, or longer stays. Hotels are responding by focusing on targeted pricing, promoting direct bookings, and emphasizing value propositions to meet changing consumer behaviors.

In the first two weeks of March, new bookings in Germany dropped sharply (CW 11 & 12: -16-20%), while demand is increasingly shifting towards western destinations. Bookings for the U.A.E. and traditionally strong destinations such as Türkiye and Egypt are also experiencing noticeable declines. Travellers seeking alternatives face rising holiday prices, limiting replacement bookings.

Türkiye aims to boost its thermal tourism revenue to $20 billion annually by 2028. The Government plans to achieve this through infrastructure modernization and new legislation that expands wellness services beyond traditional health tourism. The  new law aims to shift toward a comprehensive wellness industry in six provinces: Erzurum, Bolu, Samsun, Sıvas, Rize and Nevşehir.