The travel industry is growing again: New shifts, strategies, and features to watch

Traveler confidence is returning, and the U.S. travel industry is gaining steady ground. The Wall Street Journal (subscription required) reports that “the travel industry outlook is stabilizing as higher-income Americans pack their bags,” helping drive renewed growth in the hospitality sector. This shows travelers are more confident when booking earlier and committing to their trips more confidently.

At the same time, new tools are reshaping booking behavior. Google’s Flight Deals and hotel price tracking give travelers more transparency and control, while Airbnb’s Reserve Now, Pay Later shifts when guests commit financially.

These shifts bring both opportunities and risks to independent hotels and B&Bs. Staying on top of these shifts and their impact on traveler behavior is essential. Properties that adapt strategically can capture growth, while those that lag risk losing visibility and bookings.

The travel economy is growing as Americans hit the road

The U.S. travel economy is showing clear signs of recovery after several years of uncertainty. More Americans are booking domestic trips and planning further in advance than at any point since before the pandemic. This shift reflects more substantial traveler confidence and greater financial stability, creating a healthier foundation for growth across the hospitality industry.

Recent studies highlight just how much booking habits have changed:

• 14% of travelers now book at least six months in advance, a 4% increase in early planning.
• August 2025 flights were about 30% higher than August 2019.
• Booking ease is particularly important to Gen X and Gen Y, according to a recent Sabre survey.
• 77% of Americans say they’re happy or excited to travel this year, according to a recent Generali survey.
• 70% of Americans expect to maintain or increase travel activity this year, with domestic getaways driving much of the momentum.

These numbers show that demand is not only rebounding but also evolving, creating new opportunities and higher expectations for property owners. At the same time, the industry itself continues to shift. Travelers use new digital tools to search, compare easily, reserve accommodations, and make reshaping decisions. For independent hotels, inns, and B&Bs, this means greater predictability, more room for strategic planning, and the ability to leverage innovations that redefine how guests choose where to stay.

Google Flight Deals

Google has strengthened its influence in the hospitality industry by releasing tools that give travelers more control, better prices, and clarity in planning. Earlier features like price alerts and rate tracking helped guests identify the best time to book, but travelers still had to sort through long lists of fares and make comparisons.

Building on that foundation, Google launched Flight Deals in August 2025, an AI-powered feature that generates personalized options based on natural language requests. Travelers can now type queries like “a week in New England in October under $500” and instantly see results matched to their budget and preferences.

Currently in beta testing in the U.S., Canada, and India, Google’s Flight Deals is expected to evolve as feedback shapes refinements. The feature makes planning faster, easier, and more intentional by simplifying search and tailoring results to personal needs. Travelers gain confidence in their choices, leading to earlier, more decisive bookings.

For independent properties, the impact is clear: lower flight costs and simpler planning free up guest budgets for accommodations and encourage more trips, creating new opportunities for lodging demand.

Google hotel price tracking

Google’s hotel price tracking feature allows travelers to follow price changes over time and receive alerts when rates drop. This level of transparency has reshaped booking behavior, making guests more price-sensitive and more likely to delay a reservation until they feel they are getting the best possible deal. Properties may face more pressure as guests increasingly expect the best price and clear value at the point of booking.

While the feature increases competition, it also creates opportunities for independent properties to position themselves effectively. Guests who monitor prices closely are often ready to book as soon as the right rate appears. That means a well-timed promotion, accurate availability, or a direct booking incentive can make your property the clear choice when the alert arrives.

📌 Tip: To stand out when travelers track rates, highlight direct booking perks like complimentary upgrades, packages or flexible cancellation options.

Airbnb updates and their effect on independent hotels

Airbnb continues expanding its influence in hospitality, introducing new features and policy changes that reshape how travelers book and properties operate.

Reserve Now, Pay Later

Airbnb’s new Reserve Now, Pay Later feature lets travelers book a stay without paying up front, with payment due closer to check-in. To qualify, properties must have flexible or moderate cancellation policies, which allow guests to cancel up to 24 hours or 5 days before arrival for a full refund. If a guest misses the payment deadline, Airbnb cancels the reservation and processes refunds according to the host’s policy.

For properties, lowering the upfront cost can make it easier for travelers to commit, boosting bookings and encouraging earlier reservations that fill calendars. The trade-off is the risk of last-minute cancellations and shorter booking windows, making it harder to rebook rooms and keep occupancy and revenue on track.

📌 Tip: Check if your property is eligible for Reserve Now, Pay Later. Review what Airbnb requires and what it will entail for your property.

A push into hotels and boutique properties

At the same time, Airbnb is setting its sights on independent hotels and boutique properties. CEO Brian Chesky announced the company plans to move “significantly more aggressively into hotels,” emphasizing that Airbnb has been in discussions with hotels worldwide, especially independent boutique and bed-and-breakfast locations. He explained, “We’ve spent a lot of time looking at hotels as a business. We think it’s really compelling, and we think that there’s going to be a lot more to do with hotels on Airbnb.”

For independent hotels, this expansion can mean stronger competition for visibility and direct bookings as Airbnb deepens its presence in the market.

Service fee changes beginning October 2025

Airbnb has recently announced changes to its service fee structure for hosts using property management software. Starting October 27, 2025, the platform will move from a split model between hosts and guests to a simplified host-only fee.

While the update is designed to create more predictable pricing for travelers, it also places additional cost considerations on property owners already managing slim margins.

Strategies for independent properties to stay ahead

With new tools and shifting traveler behavior, independent properties must act strategically to remain competitive. Google’s expanding travel tools and Airbnb’s new Reserve Now, Pay Later option give guests more flexibility and choice than ever. Properties that don’t adapt risk losing bookings to those with stronger visibility and strategies that align with these shifts.

To stay ahead, focus on strengthening your digital presence. Keep listings accurate, refresh photos, encourage reviews, and make booking options clear and appealing. Pair this with flexible policies or incentives that meet traveler expectations and remove hesitation when booking.

Monitoring competitors has also become essential. Keeping an eye on local pricing strategies can inform smarter rate adjustments and help you remain competitive without undercutting your revenue. At the same time, avoid competing on price alone. Lean into your value proposition — personalized service, unique amenities, local experiences, and the distinct character that sets your property apart from larger chains. Highlighting these strengths on your website and throughout the booking process reinforces why your property offers more than just a good rate.

Finally, stay alert to new hospitality trends as they emerge. Properties that adapt early can refine pricing, tailor marketing, and emphasize the features travelers care about most before competitors catch up. Those that evolve with these travel industry shifts can attract travelers while positioning themselves for future success.

Final thoughts

As the travel industry rebounds, independent hotels have a real chance to capture growth. Travelers plan earlier, book more confidently, and use new decision-making tools. Properties must stay visible online, adapt quickly, and position themselves ahead of these shifts to keep up. Those who do will be ready to meet rising demand and build long-term success.

ThinkReservations can help you build a strategy that boosts visibility, drives more direct bookings, and positions your property to thrive as the travel industry expands. With a custom marketing plan, you’ll stay ahead of shifting travel trends and turn new opportunities into long-term, consistent growth.