Opinion: Managing Rising Fees in 2026

1/5/2026

Heading into 2026, hospitality operators face a growing margin squeeze as rising fees and hidden costs absorb more of each guest dollar, writes Michele Fitzpatrick, CEO of Eviivo, even as travelers balk at higher all-in prices. Online travel agency (OTA) commissions, often 15%-25% or more, continue to climb, while property management systems increasingly take revenue-linked fees on top of distribution costs. Payment processing adds further drag through blended rates, cross-border charges, and markups. At the same time, governments are expanding lodging and tourist taxes, particularly in the U.S. and U.K. The article argues operators must actively manage cost per booking, rationalize technology, reduce OTA dependence, and plan for new levies to protect profitability.

PhocusWire (01/02/26) Michele Fitzpatrick