Business-led travel, generational shifts, evolving guest expectations, and smarter distribution are reshaping the competitive landscape

Short-term rentals (STRs) gained rapid traction during the pandemic, offering travelers an alternative to traditional hospitality. But as global travel normalizes and trip purposes become more complex, hotels are reasserting their role—particularly in urban markets and business-led segments.

This shift isn’t just anecdotal. According to the AHLA, In New York City, STR demand dropped by more than 50% over the 12 months ending November 2024, equating to 1.8 million fewer nights sold. Over that same period, hotel demand rose by 1.2 million nights.

While globally, STR demand still grew—from 14.6% of total lodging demand in 2023 to 15.4% in 2024 —this growth has not been evenly distributed. In high-demand cities, and among travelers blending business and leisure, hotels are gaining renewed traction.

This doesn’t indicate that STRs are in decline—it highlights where purpose-driven travel is reshaping demand, and where traditional hotel infrastructure is better equipped to meet it. And as guest expectations evolve and the purpose of travel becomes more complex, the limitations of many STRs are becoming more visible.

Why Travelers Are Returning to Hotels

The resurgence of hotel preference is not based solely on price or loyalty. It’s rooted in consistency, service infrastructure, and integration with business travel tools. These factors matter more when trips involve multiple stakeholders, mixed purposes, or unpredictable schedules.

Over 54% of business travelers in 2024 took at least two bleisure trips—blending business and leisure in a single journey. Marriott reports that business stays are now 20% longer on average than pre-pandemic, and 82% of bleisure travelers extend their stay at the same hotel used for work.

Meetings and events are a key driver: 67% of bleisure trips originate from conferences, and 30% from internal team gatherings. Hotels are uniquely positioned to accommodate these travelers—not only with meeting space, but with professional-grade amenities, food and beverage outlets, co-working areas, and spas.

Additionally, hotel operators are expanding their flexibility models. Many now accommodate day-use bookings, providing short-stay options for travelers needing a place to rest, work, or recharge between flights or meetings. These offerings allow hotels to monetize inventory that might otherwise sit empty during off-peak hours, while catering to a growing segment of same-day demand—something most short-term rental hosts are unable to support operationally.

Distribution and Technology: The Opportunity for STRs

The STR category is still expanding, but cracks are emerging beneath the surface. According to recent studies, 53% of non-profit-oriented hosts report that it’s harder to operate than it was a year ago. For Competition has intensified, and without a technology strategy, many are struggling to keep pace.

The STR ecosystem lacks deep connectivity with corporate travel platforms, loyalty programs, or multi-channel booking infrastructure. The Phocuswright B2B Technology and Distribution Landscape notes fragmentation in tech adoption and scalability—areas where hotels already have mature capabilities.

But this is also where tech providers like DerbySoft can create value across the ecosystem. Whether it’s helping STRs gain exposure to business travel demand, optimizing content for multiple booking platforms, or enabling smarter rate management, the right distribution strategy can unlock untapped potential in both lodging models.

Generation Drives Preference, Not Just Price

Generational trends also point to divergent expectations. Millennials are the most active bleisure segment, with 90% reporting they combine business and leisure on trips). Gen Z travelers are highly mobile and unpredictable: 74% bring guests on business trips, and 1 in 5 don’t disclose it to their employer).

Meanwhile, Gen X and Boomers continue to favor hotels for convenience and reliability—especially for trips involving meetings or structured itineraries. Hotels have built their platforms to accommodate this diversity in traveler needs. STRs can expand their reach if they adopt similar capabilities—especially around content distribution, standardized policies, and pricing consistency. As preferences evolve, the ability to provide flexible, bookable inventory across both short and extended stays becomes a strategic differentiator.

What This Means for Hotels, Travel Platforms, and Distribution

The recalibration between hotels and STRs isn’t a zero-sum game. Both play essential roles in the global lodging landscape. But to thrive in a multi-modal future, success will depend on delivering inventory that is accessible, flexible, and aligned with traveler intent.

For hotel brands, STR operators, travel platforms, and tech providers, the priority should be:

• Making flexible inventory bookable and visible—whether it’s a hotel day rate or a professionally managed apartment
• Unifying distribution strategies to serve both business and leisure segments
• Delivering rich, consistent content that resonates across generational lines

STRs are not going away. In fact, with the right tools and distribution connectivity, they are positioned to serve demand that hotels can’t always fulfill. But when trips are tied to purpose—meetings, connection, convenience, or corporate policy—hotels are continuing to demonstrate their strength.

In the end, it’s not about hotels versus STRs. It’s about creating a smarter, more connected lodging ecosystem where all types of inventory can thrive—enabled by the technology that brings them closer to the traveler.

It’s Monday morning, and your desk already tells a familiar story: unconfirmed hotel bookings piling up, payment issues needing urgent attention, and weekend requests spanning three time zones. Your phone won’t stop ringing, your team is buried in routine communications—and you haven’t even finished your first cup of coffee.

This scenario plays out in travel management companies (TMCs) worldwide, where operational bottlenecks have become the industry’s defining challenge. But a technological revolution is quietly transforming how forward-thinking TMCs approach these persistent pain points.

Now imagine handing over all of these routine communication tasks to an AI voice agent that can handle hotel calls in multiple languages, process booking confirmations around the clock, and provide real-time updates back to your systems—all while you drink that second cup of coffee and focus on your team’s long-term strategy.

The voice AI market is experiencing unprecedented growth, with speech recognition technology projected to reach $29.28 billion by 2026. AI voice agents are one sector driving this explosive growth as they evolve from basic command responders to advanced conversation partners capable of handling complex travel scenarios.

The $47.8 Billion TMC Market Faces a Scaling Crisis

The travel management industry is experiencing unprecedented growth pressures. The global TMC market is anticipated to grow to USD 47.8 billion by 2030, while the global Travel Management Company (TMC) market size is expected to reach $36.19 billion by 2030, rising at a market growth of 5.3% CAGR during the forecast period (2024-2030).

Yet beneath these impressive growth figures lies a troubling operational reality. Traditional operational models simply cannot keep pace with this explosive demand.

As TMCs grapple with scaling challenges, artificial intelligence has emerged as more than just a buzzword—it’s becoming an operational necessity. Sales and marketing are rapidly becoming a key source of AI value in sectors including software (31% of AI value generated), and travel and tourism (31%), according to recent BCG research.

Today’s AI voice agents represent a fundamental evolution from rigid, menu-driven systems. These sophisticated platforms combine real-time speech recognition, advanced natural language processing (NLP), and contextual understanding to handle the nuanced conversations that define travel operations.

Unlike the “Press 1 for reservations” systems of yesterday, modern AI voice agents bring contextual memory, multi-tasking capabilities, and human-like conversation flow to every interaction. They integrate seamlessly with existing technology stacks through APIs, working behind the scenes while delivering visible efficiency gains.

For TMCs, this translates into practical solutions for persistent operational challenges:

Automated Outbound Communications: AI voice agents can handle hotel confirmations, invoice requests, and payment follow-ups around the clock, in multiple languages, and across any time zone. This addresses the reality that manual outbound calls consume countless hours of valuable human resources.

Error Reduction Through Precision: Voice biometrics reduce authentication times by 40%, while automated data processing eliminates the human errors that lead to incorrect bookings and payment failures.

Scalability Without Compromise: During peak booking periods, call center automation software can automatically connect customers to the IVR menu or voice assistants. Specifically, conversational AI bots can understand simple customer issues and provide the required resolution. This means handling hundreds of simultaneous conversations without degrading service quality.

Pioneering AI Voice Solutions for TMCs

While the market has seen a proliferation of AI voice agents—both industry-agnostic platforms and travel-focused solutions—DerbySoft’s approach stands apart through its purpose-built design for TMC operations. Drawing from years of deep industry experience and an intimate understanding of B2B travel workflows, our advanced AI-powered voice agents combine multilingual support, direct API integration with existing TMC systems, and human-like conversational experiences that continuously learn and improve from every interaction.

Unlike generic voice solutions adapted for travel, DerbySoft’s AI Voice technology was architected from the ground up to address the unique complexities TMCs face—from multi-language hotel communications to complex booking modifications and payment reconciliations. This specialized foundation, built on decades of TMC partnership and workflow expertise, enables our systems to provide the scalability TMCs need while maintaining the accuracy and personal touch that travelers expect.

The integration process leverages our deep understanding of TMC operations, designed for minimal disruption and allowing travel management companies to gradually transition from manual to automated processes while maintaining full operational control. Complex scenarios are seamlessly escalated to human agents with comprehensive context summaries, ensuring no loss of service quality.

The Monday morning chaos described at the beginning of this article doesn’t have to be inevitable. AI voice agents represent more than incremental improvement—they offer a fundamental transformation of how TMCs operate.

For travel management companies ready to turn Monday morning chaos into operational excellence, the path forward is clear: embrace AI voice technology as a strategic enabler of scalable, efficient, and traveler-focused operations.

As the tours and attractions market explodes toward unprecedented growth, connectivity platforms are becoming critical infrastructure. They enable hotels, OTAs, and travel agencies to capture their share of this massive opportunity.

The tours, tickets, and attractions sector is experiencing a seismic shift that extends far beyond simple digitization. With the global ticket market poised to surge by $554.2 billion between 2025-2029 at a remarkable 29.7% compound annual growth rate, this isn’t just recovery—it’s a revolution.

The numbers tell a compelling story of transformation. The tours and activities reservations market, valued at $179 billion in 2024, is projected to reach $264.4 billion by 2030. This 6.7% CAGR reflects fundamental changes in how travelers discover, book, and experience destinations. For an industry that lost approximately $23 billion in 2020 alone, this trajectory signals not just resilience but a complete reimagining of the travel commerce ecosystem.

So, how can travel companies fully capitalize on the burgeoning attraction economy? Despite significant growth potential, a critical infrastructure gap persists. According to recent industry research, connectivity remains an ongoing challenge for large and enterprise visitor attractions, as well as for resellers. Approximately half of large and enterprise attractions still rely on manual management of third-party bookings. They use outdated extranets and email systems that create operational inefficiencies and limit revenue optimization.The data reveals a stark technology divide: while 44% of enterprise attractions use channel managers—API software that connects them to distribution partners—only 17% of attractions have adopted these essential tools. This connectivity gap represents millions in lost revenue opportunities as hotels struggle to offer seamless attraction booking experiences to their guests.

The Revenue Opportunity for Hotels and Travel Companies

The shift toward experiential travel has created substantial opportunities for revenue diversification across the travel ecosystem. Hotels, traditionally focused on accommodation revenue, are discovering that attraction partnerships and tour bookings can generate meaningful ancillary income streams while enhancing guest satisfaction and loyalty.

Consumer behavior has evolved significantly. Travelers increasingly seek personalized and unique experiences that provide authentic interactions with local culture and attractions. This demand creates perfect conditions for hotels and OTAs to position themselves as experience curators rather than simple accommodation providers.

The geographic distribution of growth reveals compelling opportunities. While the United States maintains a strong position at $46.7 billion in 2024, China emerges as a particularly dynamic market with an impressive 11.1% CAGR trajectory toward $64.7 billion by 2030. These regional variations create opportunities for sophisticated distribution strategies that leverage local market knowledge while maintaining global connectivity standards.

Technology Solutions Bridging the Gap

Several technology companies are working to address the connectivity challenges in the attractions space. DerbySoft, which provides connectivity services, AI-powered marketing, and content platforms, represents one approach to solving these distribution challenges for major hotel groups, independent properties, OTAs, and travel management companies.

Our connectivity solutions focus on simplifying ARI (Availability, Rates, and Inventory) management while enhancing communication between suppliers and distributors. For hotels and resellers, this provides access to attraction tickets, tours, and experiences through unified connection points, reducing integration costs while expanding inventory options for guests.

DerbySoft’s platform addresses the needs of various travel industry stakeholders through scalable connectivity architectures. We enable real-time booking updates, personalized recommendation engines, and analytics supporting revenue optimization strategies across multiple touchpoints.

Our integration of artificial intelligence represents a significant advancement in attraction distribution technology, supporting dynamic pricing strategies and personalized upselling opportunities that can significantly impact revenue per visitor. This enables pre-sales opportunities, targeted promotional campaigns, and sophisticated customer segmentation strategies previously impossible with traditional systems.

The Platform Approach

The success in the evolving attractions landscape requires more than point-to-point integrations. Comprehensive ecosystem approaches are becoming increasingly important. These enable real-time availability, rates, and inventory management while reducing operational overhead for both suppliers and distributors.

This ecosystem approach is particularly valuable for independent hotels seeking to compete with larger chains that may have more extensive concierge resources. Through integrated platforms, these properties can offer guests curated local experience packages that generate commission revenue while differentiating their service offerings.

Season pass programs and comprehensive experience packages that combine accommodation, dining, transportation, and attraction access can become more manageable through integrated platforms. This enables hotels and tour operators to capture greater wallet share while providing travelers with streamlined booking experiences.

The $554.2 Billion Future

As the tours, tickets, and attractions industry continues its trajectory toward digital-first operations, the companies that will capture disproportionate market share are those leveraging integrated platform solutions. Success requires a fundamental reimagining of how attractions, accommodations, and distribution partners collaborate to create seamless customer experiences.

Hotels that successfully integrate attraction partnerships through comprehensive connectivity platforms can expect meaningful improvements in guest satisfaction scores, average length of stay, and total revenue per available room. The key lies in selecting technology partners that provide ecosystem solutions rather than creating operational complexity through multiple point-to-point integrations.

The experience-centric economy represents not just market expansion but a fundamental restructuring of how travel commerce operates in an increasingly connected world. Companies positioned at the center of these emerging ecosystems—connecting major hotel groups, independent properties, OTAs, and travel management companies to the global attractions marketplace—stand to benefit from enhanced revenue streams, improved operational efficiency, and stronger customer relationships that drive long-term business success.For travel industry leaders, the message is clear: the attraction economy’s explosive growth will be captured by those who embrace comprehensive connectivity solutions that transform fragmented booking processes into seamless, AI-powered experience platforms. In this rapidly evolving landscape, the companies building the infrastructure for travel commerce connectivity will play an increasingly critical role in determining which travel businesses thrive in the digital marketplace. How is your business preparing to capitalize on this experience-centric future?

Let’s imagine you’re planning to open a brick-and-mortar business in the heart of the Upper East Side in New York City. Rent—whether commercial or residential—is high. After all, for many, New York is the epicenter of action. A tangible energy thrums through the streets at all hours of the day, as people from all walks of life hustle to and from subway terminals, sky-high office buildings, cozy corner cafes, and trendy bars and restaurants teeming with patrons and delicious food. In a city like New York, the stakes are high, but so is the potential reward if you play your cards right.

Now, let’s imagine you’ve found the perfect space for your business, but there’s a catch. If you select this location, you can only operate between the hours of 5 PM and 9 AM, meaning your business will be left to sit empty (and unprofitable) during the day. Depending on the nature of your business and the costs associated with maintaining and operating it, this could be a dealbreaker. Yet, this is precisely how hotels have traditionally operated. 

With fixed check-in and check-out times (usually around 3 PM) and many guests checking out early and checking in late, hotels are often 30-40% empty during the hours of 9 AM to 5 PM. Perhaps, you could chalk this up to the cost of doing business. But in the world of hospitality, a key indicator of success is utilization, so why should any hotel brand allow their property and its sought-after amenities to remain so underutilized?

Hotels — especially in today’s “on-demand,” tech-enabled landscape—should be viewed as so much more than a “nighttime” product. With the right technology and the right approach, properties can truly maximize their inventory and open their amenities to delight an emerging guest segment and meaningfully boost their bottom line.

Who Really Books a Hotel by the Hour?

The term “day use” or “hourly hotels” has historically invited some questionable associations. So, to understand this segment and shift how it’s perceived by the market, it’s important to first define who the modern “day use” guest actually is. 

First, you have local residents of a city who crave a temporary escape in an environment that feels removed from home and their normal day-to-day experience. Even if travel is a priority, many individuals and families might not be able to get away for an extended trip more than once or twice a year. However, with the inclusion of “mini getaways” comfortably within city limits, monthly hospitality experiences suddenly become possible. You might see someone unwinding by the pool before heading home to pick up the kids, or a couple celebrating an anniversary in the middle of a work week.

Of course, we also have the modern business traveler, especially those who frequently find themselves on quick day trips to attend meetings, events, or collaborate with colleagues in unfamiliar cities. Traditionally, these guests have had little option other than to “squat” in hotel lobbies or local coffee shops, with no real amenities at their disposal. So what if, instead, they could rent a quiet room to reset between calls, host a client in an elevated setting, or simply shower and change before their next meeting or dinner invite? For this guest, it’s not just about convenience; it’s about professionalism, well-being, and reclaiming space in a crowded city.

Finally, we have the “in-betweeners” — the layover guests caught in that liminal space between flights or their next destination, with enough time to need a place to go but not enough time for a traditional, overnight hotel stay. After all, most people would trade a stiff plastic chair or hours languishing in a terminal restaurant or coffee shop for a few hours in a comfortable bed, a shower, or the convenience of a well-equipped hotel gym any day. In this scenario, day-use hotels turn otherwise wasted hours into productive, restful, even restorative moments of reprieve. 

Each of these archetypes represents a different kind of untapped value for hotels, unrealized bookings captured, experiences reimagined, and new guest relationships formed.

It’s Time to Transform Losses into Profits

Given that hotels are consistently underutilized during daytime hours—along with many of their amenities and services—the business case for optimizing this segment is clear.

By monetizing rooms and facilities that would otherwise sit empty, hotels can unlock substantial incremental revenue. What was once viewed as lost opportunity becomes a new, profitable income stream. In fact, rooms sold for short daytime stays can earn 60% to 70% of the standard nightly rate, offering a strong financial incentive for hotel operators.

Moreover, daytime guests typically stay for 4 to 6 hours and frequently spend on additional services like the restaurant, bar, or spa—further boosting the property’s direct revenue.

This shift is particularly impactful in a popular urban hub like New York, where the demand for flexible, on-demand services is rising to suit the evolving needs of modern guests

The potential demand for day-use rooms and services is estimated to be currently around $6 billion annually—a figure that lends context not only to the existing demand for day-use hospitality offerings, but also to the future growth potential of this sector. 

By providing flexibility and a range of services that private hosts like Airbnb simply cannot match, hotels can recapture guests who might otherwise choose alternative accommodations. Innovative partners like DayBreakHotels and Hotels By Day are already at the forefront of the day-use hospitality market, by providing a user-friendly booking platform for flexible stays at hotels throughout popular urban markets, like New York, Los Angeles, Chicago, San Francisco, and Miami. 

Yannis Moati, CEO explains, “Our team at HotelsByDay is very bullish on the prospects of this sector, as it is estimated to be a $6Bn market by this decade, and so far market actors have registered just about 10% market penetration. Combined with a modern guest that requires more flexibility than ever, a challenging economic environment which forces us to adopt new models, and now DerbySoft making this technological connection seamless, the Day-Use sector will experience strong growth, making a substantial impact in hotel PnLs. This is the perfect time for hotels to join us on this innovative model and beat their comp-set.”

Simon Botto, CEO of DayBreakHotels, adds: “At DayBreakHotels, we have a unique and comprehensive view of the market, with direct contracts with over 6,000 hotels—including both international chains and independent properties—across 18 countries. For more than a decade, these hotels have trusted us to help them maximize occupancy, not just for rooms, but also for underutilized services, driving new and incremental revenue.”

In my view, there has never been a better time for this sector. Technology is rapidly advancing, allowing day bookings to seamlessly integrate with hotel systems like CRS and PMS. Demand is accelerating, and hotels are more eager than ever to unlock new revenue streams and reach additional customers. For hotels, joining this market—and partnering with DayBreakHotels—is an easy and strategic decision.”

By connecting hotels with a diverse array of customers – from business travelers looking for a reprieve between meetings to local residents looking for a mini-escape – both companies play an integral role in helping hotels effectively tap into this lucrative market.

DayBreakHotels leverages a user-friendly platform that enables seamless short-term day use room bookings. It empowers guests to enjoy flexible accommodation options, as well as book hotel amenities like meeting rooms, spa, restaurants, pools, and gyms, which can be booked both independently or bundled with the room — enhancing the guest experience for local residents and business customers alike. Meanwhile, Hotels By Day, also located in the U.S., focuses on offering flexible stays for travelers in transit or those needing temporary workspaces, ensuring that hotels can monetize their rooms during the day. 

Both companies are committed to transforming the hospitality landscape by connecting hotels with a diverse array of customers, driving significant revenue growth, and responding to the increasing demand for convenience and flexibility. Travel agencies can greatly benefit from partnering with DayBreakHotels and Hotels By Day, as they provide valuable options for clients seeking unique travel experiences, making them indispensable partners in today’s dynamic travel market.

The Long-Awaited Technology Revolution in Day Use Hospitality Is Here

Traditionally, technology has been a barrier to non-traditional utilization strategies. Legacy hospitality solutions are notorious for their rigid structure, which limits a hotel’s ability to adapt appropriately to the evolving needs of modern guests. 

To this effect, it has been difficult—if not impossible—for hotels to capitalize on the burgeoning day-use market because available technology could not distribute or offer a zero rate code. That is, until now.

Today, we find ourselves within a period of significant innovation, which grants hotels the opportunity to discard the shackles of legacy tech in favor of more flexible, dynamic platforms better suited to the current and future landscape.

DerbySoft has been at the forefront of this technological revolution, developing the critical connectivity infrastructure that enables these day-use bookings to become a reality. By solving the previously insurmountable challenge of distributing zero rate codes, DerbySoft’s advanced distribution technology now allows hotels to seamlessly offer and manage these non-traditional booking options. 

This breakthrough connectivity solution bridges the gap between hotels’ existing systems and innovative day-use platforms, making what was once impossible not only possible but highly profitable.

With the help of advanced connectivity solutions, hotels can seamlessly integrate day-use bookings into their existing systems to overcome previous operational limitations and offer services that cater to various customer demands.

The availability and integration of more advanced booking systems allow for real-time availability and pricing adjustments, which not only enhance operational efficiency but also elevate the guest experience, making it seamless for customers to enjoy the amenities they desire without the constraints of traditional check-in and check-out times.

The key theme here? Adaptability. With better tech comes better agility in a market that demands constant adaptation to delight travelers who increasingly expect tailored experiences that fit their busy lifestyles.

In essence, the emergence of day-use hotels is a reflection of the evolving hospitality landscape—one that prioritizes flexibility, convenience, and, of course, the guest experience. Moving forward, the ability to capture same-day bookings and cater to a diverse range of guest needs is not just an operational adjustment; it’s a business imperative that gives hotels a distinct advantage in an increasingly competitive and crowded marketplace.