According to a new research report developed by Skift and consulting and tech firm ZS, the global travel and hospitality industry is entering another cycle of uncertainty, shaped by economic headwinds, geopolitical instability and shifting consumer demand patterns.
The report—based on a survey of 277 senior travel executives across North America—argues that to remain competitive, companies must diversify revenue streams by monetizing noncore assets. These assets are those that extend beyond the core travel experience and leverage existing customer bases, platforms and capabilities.
“Everybody we surveyed agreed that they must broaden their revenue models,” ZS Principal Arun Shastri told Hotel Management—but noted that some survey respondents expressed apprehension about trying new ideas.
The Need for Diversification
Nearly all—89 percent—of surveyed executives agree travel brands must broaden their revenue models. And while 75 percent have identified noncore assets to monetize, only 32 percent describe their efforts as “very innovative,” underscoring a gap between intent and execution—what Shastri described as the execution gap. “If 75 percent of the participants identified some non-core assets to monetize, one would have expected more of them to describe their efforts as innovative or very innovative,” he said.
One way Shastri suggested bridging the gap is to innovate within the framework of established core capabilities. “You start a venture, and you have a very clearly identified relationship, but you are tethered to the mothership in very meaningful ways,” he said. “This doesn't mean you go off and you do things on your own somewhere else. This means you find a way to be much more connected with all the things that are part of the organization.” For example, Shastri noted growing demand for “more curated experiences” in travel, which hoteliers and travel professionals can meet by expanding their technology and services—that can be monetized for improved profits.
At the same time, 86 percent of respondents reported at least moderate bottom-line impact from monetization, with more than half citing improved profitability or customer experience. Executives consistently point to industries such as media, retail, finance and technology as outperforming travel in innovation. This suggests that travel and hospitality brands should adapt proven practices from other sectors while tailoring them to unique industry dynamics.
The Five As
The report also introduces the 5As framework—a structured model for identifying, evaluating, and operationalizing incremental revenue opportunities.
The 5As Framework offers a mental model for moving from ideation to execution:
Ancillaries: Established add-ons such as baggage fees, seat upgrades and in-room Wi-Fi, which still account for ~30 percent of supplier revenue. Innovation in bundling and packaging remains underdeveloped.
Attention: Monetizing owned media assets—e.g., Marriott’s in-room ad network or United Airlines’ seatback screens. With half of executives viewing this as a growth area, attention remains one of the most underleveraged assets.
Access: Extending monetization through digital ecosystems, partnerships, and physical spaces. Airbnb’s integrated “Experiences” exemplify how platforms can unlock new revenue streams.
Affinity: Building loyalty-driven revenue via co-branded credit cards, exclusive memberships, and partnerships. In 2020, airline loyalty programs generated over $8.5 billion, cushioning losses during the pandemic.
Ability: Commercializing proprietary expertise and infrastructure through data sales, white-labeled tech or consulting services—an area with significant untapped potential.
Executional Challenges and Considerations
A full 63 percent of executives worry that noncore ventures may distract from the core business. Others cite regulatory risks, brand misalignment or lack of asset visibility. “Your core is the most important thing that's driven your success all this time,” Shastri said. “You got to make sure that you're bringing the energy towards that.”
To address these barriers, the report identifies six go-to-market imperatives:
Commit leadership and resources.
Audit existing assets enterprise-wide.
Align initiatives with brand strategy.
Proactively manage compliance and privacy.
Foster rapid experimentation.
Maintain a long-term view.