Polled annually since 2005, SmartTravelAsia this year monitors travellers demanding security and service, while Dubai drops out of the top spots as Bangkok, Macau, Tokyo, Vietnam, and Bali climb; Malaysia, Singapore, and Hong Kong gain from rerouted traffic. Here is a peek preview of the rankings and honours in 2026.

Waldorf Astoria Dubai,  Qatar Airways fly the desert flag

UAE destinations, airlines and hotels, which had held significant positions in previous years, disappeared from the top 10 lists — this, with two major exceptions: Qatar Airways (first for Business Class) and Waldorf Astoria Dubai Palm Jumeirah (Top 10 for Luxury) — as several major brands subsisted on weekend staycation traffic, or closed.

SIA, Cathay Pacific, Malaysia Airlines soar

Singapore Airlines easily held on to the first spot as Best Airline Overall Worldwide — first for Cabin Service, followed closely in second place by Cathay Pacific. This poll marked a strong return for Malaysia Airlines (third for Cabin Service and sixth overall). Singapore’s Scoot flew away with the Best Budget Airline in Asia, nudging ahead of long-dominant AirAsia (second) with HK Express third. Boutique carrier Bangkok Airways posted an emphatic sixth place for cabin service, ahead of Thai Airways in eighth.

The search for emotional takeaways — and Service

International travellers looked for safe options with an eye on quality service. The need for an emotional takeaway and human connection was evident in the Best Hotel Service List (the hallmark of quality), which was packed to the rafters — almost every high-ranking property was listed here, and this category received the most votes. Travel uncertainties, combined with higher costs, also created pressure to find value beds without sacrificing service. 

Brand recognition is clearly at the heart of it. This year’s top Hotel for Service was the fairly new all-villa Raffles Sentosa Singapore that led a feisty pack just ahead of Mandarin Oriental Bangkok, The Peninsula Manila, and MGM Macau (in joint second place), and Aman Nai Lert Bangkok, The Ritz-Carlton Kyoto and Kimpton Maa-Lai Bangkok (tied in third).

Top-ranked city-airport combo, boosted local hotels

Bangkok ranked as the top Holiday Destination while its airport was in eighth place. Tokyo ranked second (with its two airports in the top 10), and Bali and Kyoto shared third place. Singapore continued to make a strong showing in the top spot for Business & Meetings with its Changi Airport unopposed at No 1 among the World’s Best Airports. A strong destination-airport combination proved a boon for hotels in several cities.

Hong Kong made a huge comeback after several years in the doldrums. Cathay Pacific Airways ranked second Overall Worldwide (after SIA) and for Cabin Service, while the city placed third for Meetings and fourth for Leisure. 

Hong Kong International Airport ranked second worldwide, and the Peninsula Hong Kong (awaiting a huge multimillion-dollar redo) was placed first for Luxury with Regent Hong Kong in third and Upper House fourth. 

Revamping Mandarin Oriental Hong Kong and the busy Four Seasons secured a joint second place for Business and Meetings. The tiny neighbouring enclave of Macau (with a struggling airport) placed a strong fifth spot among Top Holiday Destinations in Asia as well as for Meetings, some of this fuelled by Hong Kong’s success. This helped float a few boats — MGM MACAU No 3 for Luxury and MGM COTAI No 3 for Meetings;  The Londoner (No 3 for Families), Artyzen Grand Lapa (No 7 Families), Parisian, Wynn, and Grand Lisboa Palace Resort.

Malaysia rocketed up the ranks with KLIA ranking the No 3 Best Airport Worldwide (and five KL hotels in the Top 10) just ahead of Incheon Seoul and Haneda Tokyo

Vietnam made an impressive showing with a range of hotels and destinations in the Top 10 — Mia Saigon was rated the No 1 Boutique Hotel in Asia with Alma Resort Cam Ranh and Park Hyatt Saigon both placing Top 5 in other categories.

Top brands and hotel groups with highest recognition

TOP BRANDS AT A GLANCE 2026: Singapore Airlines (Best Airline Worldwide, and for Cabin Service); Qatar Airways (Best Business Class Worldwide); Scoot (Best Budget Airline Asia); Singapore Changi Airport (Best Airport Worldwide); Bangkok (Best Holiday Destination); Singapore (Best City for Meetings); The Peninsula Hong Kong (Best Luxury Hotel, Asia); Mia Saigon (Best Boutique Hotel, Asia); Andaz Bali (Best Lifestyle Hotel, Asia); Four Seasons Hotel Bangkok at Chao Phraya River (Best Business & Meetings Hotel); Banyan Tree Samui (Best Spa Hotel); AYANA Resort Bali (Best Wedding Hotel); Centara Grand Mirage Beach Resort Pattaya (Best Family Hotel, two years in a row), Raffles Sentosa Singapore (Best Hotel for Service); and the reimagined Anantara Siam Hotel Bangkok (Best New Hotel, after a USD50 million facelift).

TOP HOTEL GROUPS: A few brands dominated the rankings this year. These included Hyatt (with the hugely popular Park Hyatt brand at the fore and Andaz making an impact); InterContinental (rolling out Kimpton, Regent, Holiday Inn, Vignette Collection, and InterCon); Mandarin Oriental (with a clutch of old, new, and the remodelled); Capella (which featured several properties in the Luxury and Boutique Lists); Rosewood; and Shangri-La. Others with a notable number of placements included Aman Resorts; luxe MGM with two wins in Macau; Thailand’s homegrown Centara; and India’s Oberoi and Taj.

JAUNTY INDEPENDENTS: It was equally a celebration of jaunty independents that caught traveller attention — and not for the lowest prices — from Amorita and The Funny Lion in the Philippines to Soori (Penang and Bali), Samode Palace and The Khyber Himalayan Resort & Spa (India), to Eastern & Oriental Penang, the stately riverfront Mia Saigon, and rambunctious bamboo-inspired Bambu Indah (Bali). Our Top 10 Boutique Hotels List is packed with exciting brands that hold out much promise, from old standout Dwarika’s Kathmandu to Dolkhar Ladakh and Bhutan Spirit Sanctuary.

Reader trips, interests, and engagement

TRIPS GO REGIONAL: Readers on average took 12 air trips (same as in 2025) but with a greater share of these on domestic, short-haul, and regional routes as Mid-East blockages pushed up Southeast Asian travel. And voters’ household income averaged USD156,000 per annum.

TRAVELLER INTERESTS: Key interests were broadly similar to 2025 and demonstrated a strong demand for authentic local engagement — dining and nightlife led the field (76%), followed by culture, heritage and history (68%); shopping (67%); spas and wellness (67%); adventure and nature (60%). Next in line were child-friendly resorts (60%); conferences and meetings (45%); resort weddings (35%); golf (28%); casinos (26%); cruises (22%); and diving (16%).

PURCHASES over the year include camera gear and phones (76%); luxury fashion (65%); cars (56%); city or holiday property (55%); duty-free alcohol (52%); and medical tourism (33%).

About Smart Travel Asia
Smart Travel Asia launched in February 2003 as the region’s first fully online publication. Many readers from the former print magazines migrated to its online presence. Over 60% visit the magazine directly via bookmarks, referrals, monthly e-newsletters, and social media, as well as through diverse searches via Mojeek, Brave Search, Bing, DuckDuckGo, Baidu, Yandex, Naver, Kagi, SwissCows, ChatGPT, and newer AI platforms.

For more information: Smart Travel Asia.

(Source: Smart Travel Asia)

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The latest figures show that global leisure travel spending reached USD6.15 trillion in 2025, up 3.5% year-on-year and accounting for 80.5% of total global travel expenditure. Of this, Europe attracted USD2 trillion, equivalent to USD1 in every USD3 spent worldwide on leisure travel, highlighting the region’s enduring appeal as travellers embark on this year’s summer holidays.

Southern European destinations remain at the heart of this success. France, Spain, Italy and Türkiye remain among the most sought-after summer destinations globally, benefiting from strong international demand, diverse source markets, world-class tourism offerings and robust connectivity.

As Europe experiences another busy summer season, the region’s tourism performance reflects not only strong seasonal demand but also its longer-term competitiveness. Leisure spending growth remained resilient across key destinations in 2025, with France expanding by 3.6%, Spain by 2.6% and Italy by 2.2%.

Looking ahead, Europe’s growth momentum is expected to continue beyond the summer months and into 2026, when the region is forecast to expand by 3.7%, outpacing the global average of 3.1%.

Italy is projected to lead this next phase of growth with a 4.7% increase in leisure spending, followed by Spain (+4.3%), Türkiye (+4.1%) and France (+2.6%), reinforcing Southern Europe’s position as a powerhouse of global tourism demand.

This sustained growth is also being supported by evolving global travel patterns, with Southern European destinations increasingly benefiting from demand redirected from other regions, further strengthening their competitive positioning.

WTTC President & CEO, Gloria Guevara, said: “With summer travel at its peak, Europe continues to set the pace for global leisure tourism, capturing one-third of all spending worldwide and demonstrating the strength, diversity and resilience of its tourism sector.

Southern Europe remains the engine of this growth. Destinations such as Spain, Italy, France and Türkiye continue to attract strong international demand thanks to their unique visitor experiences, excellent connectivity and competitive tourism offerings.

With millions of travellers currently holidaying across the continent, destinations must continue investing in infrastructure, connectivity and sustainable tourism management to support future growth and maintain their global competitiveness. The outlook for 2026 shows Europe is well positioned to continue leading global Travel & Tourism.”

WTTC’s Economic Impact Research is produced in partnership with Oxford Economics and is among the world’s most authoritative datasets on the economic contribution of Travel & Tourism. 

Forecasts for 2026 are based on current economic and geopolitical conditions at the time of publication and include assumptions related to inflation, energy prices, consumer demand, and regional geopolitical developments. As the global situation evolves, projections may change.

(Source: WTTC)

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For Europeans, July and August mark the height of summer and a peak travel period, when schools break and holiday plans come to life. In 2026, Thailand retains its crown as the most-searched Asian destination among European travellers for the second consecutive year, Indonesia shifts to second place, and Japan takes third.

The findings are based on Agoda’s accommodation search data for European travellers considering summer accommodation stays across Asia. Indonesia’s jump from third place last year to second place this year reflects sustained global interest in Bali and growing curiosity about the wider archipelago. Japan remains firmly in the top three and continues to attract notable interest across European markets. Vietnam’s rise to fourth from fifth place last year underscores its growing profile as a must-visit destination, while Malaysia rounds out the top five.

Across the top 20 destinations, India saw the most notable year-on-year growth in European searches at 14%, followed by South Korea at 13% and Vietnam at 12%. These three markets stand out as the region’s fastest-rising for European summer travel interest, pointing to a growing appetite for diverse itineraries beyond Asia’s traditional hotspots.

Across destinations seeing interest from European travellers, the perennially popular Bangkok and Bali take the top two spots for the second year running, with Samui Island cementing its place at number three, Tokyo at four and Pattaya rounding out the top five spots.  

In Europe, the top five origin markets of France, Germany, the UK, the Netherlands, and Spain remain consistent from 2025 to 2026, a sign that Europe’s most enthusiastic Asia travellers are as keen as ever. 

However, other European markets have also seen growing interest: Türkiye leads with a 39% increase in Asian destination searches, followed by Hungary (22%) and the Czech Republic (16%). This signals that interest in Asian travel is spreading further across the European continent, with Central and Eastern European travellers increasingly joining the Asia-bound wave.

Agoda Senior Vice President, Supply, Andrew Smith said: “What stands out in this year’s data is how broadly European interest in Asia has grown. We’re seeing increasing travel appetite from Europe to Southeast Asia, Northeast Asia, and South Asia at the same time, pointing to expanded enthusiasm for the region. That same curiosity is showing up at the city level too, with more travellers venturing beyond the well-known capitals to explore coastlines, islands, and destinations that feel a little more off the beaten path. At Agoda, as Asia’s travel expert, we are excited to help more travellers discover their own version of Asia, wherever that takes them.”

(Source: Agoda)

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Yet, in my experience, many still concentrate too heavily on the transaction rather than the reason people travel.

Travellers rarely remember how many points they earned from a journey. They remember the local meal, the heritage site, the unexpected landscape or the people they met along the way. This is particularly noticeable during the short road trips I regularly take with friends from Bangkok. We enjoy discovering destinations together, stopping at local restaurants and staying overnight in places we might otherwise have overlooked.

This growing preference for experiences is highlighted in Agoda’s 2026 Travel Outlook report. The research found that cultural exploration motivates 32% of Gen Z travellers, followed by outdoor activities at 30% and culinary experiences at 28%.

These findings closely reflect what I see in my own travels, even though my companions and I belong to a very different generation.

The desire to explore local culture, enjoy regional food and discover unfamiliar places is certainly not confined to younger travellers.

Loyalty programmes therefore have an opportunity to move beyond conventional points, discounts and room upgrades. Destination-specific activities, exclusive cultural encounters, local dining experiences and carefully designed travel packages could provide much more memorable and persuasive rewards.

Nearly three in four Gen Z travellers, or 73%, plan to take between one and six trips annually, while 86% prefer stays lasting from one to seven days. This pattern is also familiar to active seniors – retired or not.

My own group takes approximately six short road trips each year. We usually travel for three or four days in a 10-seat van with a driver, making several overnight stops at destinations located between two and eight hours from Bangkok. For us, useful loyalty benefits could include regional hotel packages, dining credits, heritage visits, wellness activities, private guides and transport arrangements.

Sustainability is also becoming more influential. Agoda reports that 23% of Gen Z travellers prefer off-peak travel to reduce their environmental impact. Active seniors are equally well placed to travel outside busy holiday periods because they generally have greater flexibility.

Airlines, hotels, banks and loyalty providers could encourage this behaviour through off-peak member fares, sustainable accommodation, responsible tourism experiences and rewards that disperse visitors beyond overcrowded destinations.

Gen Z are more prone to plan around experiences and expect a straightforward path from discovery to booking. 

The opportunity, however, extends well beyond Gen Z. I firmly believe programmes that understand how people actually travel, and reward them with relevant experiences rather than points alone, can build stronger engagement and more lasting customer relationships across generations.

About the author
Andrew J Wood is a Bangkok-based British travel writer and former hotelier who has lived in Thailand since 1991. He writes extensively about tourism, hospitality and aviation across the Asia-Pacific region. He is a long-standing senior member of Skål International, a former Director and Past President of Asia, Thailand and Bangkok.

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The result is the widest search-to-booking conversion gap in the region, suggesting Singapore travellers are moving from inspiration to purchase faster than their regional peers.

Traveloka has released the Traveloka SEA Index (Q2 2026, Singapore Edition), offering insights into how Singaporeans’ travel preferences are evolving and which destinations are gaining the strongest momentum across the region. 

Key takeaways

Singapore recorded the strongest booking momentum in Southeast Asia, with outbound bookings growing 90% year-on-year, significantly outpacing search growth and highlighting strong traveller confidence and purchase intent.

East Asia is driving Singapore’s fastest-growing travel demand. Destinations such as Fukuoka, Jeju, Chengdu, Shenzhen and Kunming are growing four to eight times faster than the wider market, reflecting increasing interest in emerging destinations beyond traditional favourites.

While Bangkok, Kuala Lumpur, Ho Chi Minh City and Bali remain among Singapore’s most-booked destinations, Singaporeans are increasingly venturing further afield and spending more on distinctive travel experiences. Fukuoka, in particular, is growing at approximately eight times the market pace, making it one of the quarter’s standout performers.

Across Southeast Asia, Osaka, Seoul, Shanghai and Taipei were among only four destinations that outperformed overall market growth across all five Traveloka markets. At the same time, secondary Chinese cities including Chengdu, Shenzhen, Kunming and Chongqing grew at two to four times the market pace, supported by expanded visa-free access and stronger air connectivity.

In an unexpected twist, Qingdao emerged as one of the quarter’s breakout destinations, with bookings across Southeast Asia surging alongside growing flight connectivity and rising interest in China’s emerging tourism cities beyond the traditional gateways.

(Source: Traveloka SEA Index)

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While favourites like Bandung, Yogyakarta, and Bali remain the most-searched accommodations, the popularity of nature-oriented regional holiday spots in West Java, such as Pangandaran, Garut, and Anyer, is also rising.

Top 10 domestic destinations for Independence Day long weekend 2026 – Agoda

• Bandung
• Yogyakarta
• Bali
• Jakarta
• Puncak
• Malang
• Pangandaran
• Anyer
• Bogor
• Garut

Agoda’s search data shows that cultural and leisure hotspots continue to draw the highest interest for one of Indonesia’s most celebrated holidays. Travellers can enjoy not only famous attractions related to nature, culture, and culinary experiences, but also take part in Independence Day-themed activities at these destinations, from visiting museums and monuments to exploring historic sites.

Earning the top spot was Bandung, offering a popular short-break destination for those travelling from nearby Jakarta and surrounding areas, with renowned historical landmarks such as Gedung Sate, Monumen Bandung Lautan Api, and Gedung Merdeka. 

Meanwhile, Yogyakarta, ranking second, makes an ideal destination for cultural heritage, sightseeing, and family-friendly attractions such as Benteng Vredeburg, Istana Kepresidenan Gedung Agung, and Monumen Jogja Kembali. 

Finally, as Indonesia’s flagship holiday destination, Bali ranked third, appealing to domestic travellers seeking a beach and resort getaway.

Jakarta, ranking fourth, saw nearly a three-fold increase in travel interest as the capital hosts the centre of Indonesia’s Independence Day celebrations. Beyond the festivities, the city continues to attract travellers with its urban attractions, culinary experiences, and staycation options.

Nature-led short-drive getaways lead the growth in searches

Agoda also reports that regional destinations in West Java saw the highest increase in searches during the long holiday weekend. Pangandaran and Anyer saw increases of more than nine- and 10-fold in travel interest.

Cool-weather escapes draw steady travel interest

Agoda’s data also reveals that destinations offering cool weather, scenic hillside views, and diverse culinary offerings are also appealing to domestic travellers seeking a quick getaway during the upcoming Independence Day long weekend. Puncak, Malang, and Bogor have seen a four- to five-fold increase in travel interest, offering accessible, family-friendly leisure options. Malang specifically features amusement parks, a zoo, and museums, making it an ideal holiday for all ages.

Agoda Senior Country Director, Indonesia, Gede Gunawan shared: “The fourfold increase in travel interest during this year’s Independence Day holiday shows just how eager Indonesians are to make the most of the long weekend by travelling and making memories with family and friends. While iconic destinations like Bandung, Yogyakarta, and Bali remain enduring favourites, it’s also exciting to see rising travel interest in alternative getaways such as Pangandaran, Garut, and Anyer, as travellers look for destinations that are close to major cities, more affordable, less congested, and rich in different kinds of travel experiences.”

(Source: Agoda)

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Pricing pressures are expected to ease gradually next year. Still, travel costs are unlikely to return to prior levels, as many of the forces driving higher prices have become long-term features of the industry rather than short-term disruptions.

This is according to the new 2027 Global Business Travel Forecast, released last week by the Global Business Travel Association (GBTA) and ALTOUR. The report examines the economic forces reshaping the cost of business travel globally, including energy prices, labour costs, aircraft supply constraints, currency fluctuations and other factors.

“Business travel remains a powerful indicator of business confidence. Companies continue to invest in face-to-face connections, customer relationships and growth despite higher costs and greater complexity,” said  GBTA CEO Suzanne Neufang. “Business travel may need to weather more uncertainty through this year. In this environment, a well-managed travel program is essential. Realising travel’s full value will depend on managed programs backed by strategic foresight, data and decision-making.”

The forecast identifies energy prices and labour costs as the two most significant forces shaping business travel pricing. The 2026 closure of the Strait of Hormuz triggered the largest oil supply disruption on record, driving sharp increases in crude oil and jet fuel prices and affecting airline operating costs worldwide. Although fuel prices have retreated from peak levels, labour costs continue to rise across airlines, hotels, ground transportation, and event and meeting providers due to multi-year agreements, wage inflation, and ongoing workforce shortages.

Airfares face pricing pressure

Air travel remains the most volatile category in the forecast, reflecting continued exposure to fuel costs, aircraft shortages, labour expenses and premium-cabin constraints.

On average, global airfare is forecast to reach USD756, up 4.7% from 2025. Economy fares are projected to rise 8.7% in 2026 to USD536.

Premium fares (e.g. premium economy, business class and first class) are expected to increase 9.5% to USD4,488, reflecting ongoing pressure on long-haul and premium travel markets.

In 2027, airfare increases are expected to slow to 1.5% for overall fares, 1.1% for economy fares, and 2.2% for premium fares.

North America and EMEA are expected to experience some of the strongest average airfare increases in 2026, driven by capacity constraints, higher operating costs and ongoing aircraft delivery delays.

In contrast, Latin America is seeing capacity grow alongside demand, helping moderate airfare increases relative to other regions.

Global hotel growth masks widening regional gap

Global hotel average daily rates (ADR) are expected to increase 3.7% in 2026 to USD168, followed by a more moderate 1.8% increase in 2027 to USD171.

Ground transportation Stabilises

Car rental, the largest component of managed ground transportation, saw rates decline in 2025. Average rates are forecast to increase by 3.6% in 2026 to USD46.50 per day, then drop by 0.9% in 2027 to USD46.10 per day.

Among global regions, APAC rates in 2026 are expected to be the highest at USD57.70 per day, up 4.0%. Fleet availability and vehicle supply are stabilising, helping moderate pricing pressure across most regions.

Event budgets rise despite cost pressures

Meetings and events budgets are expected to increase through 2026 and 2027. While negotiated group hotel rates remain relatively stable, food and beverage, production and labour costs continue to put pressure on program budgets.

Cost per attendee per day is forecast to increase approximately 3.0% to USD263 in 2026 and 1.5% to USD267 in 2027.

Food and beverage and production expenses remain the primary drivers of meeting cost inflation.

While travel cost growth is expected to moderate in 2027, prices are unlikely to return to 2025 levels. Structural factors, including aircraft delivery delays, sustainable aviation fuel (SAF) requirements, labour shortages, and geopolitical uncertainty, are expected to lead to a costlier travel environment.

The forecast also highlights significant regional and category differences, underscoring the need for more targeted travel planning. Rather than relying on global averages, travel buyers should evaluate costs by region, market and category, as pricing drivers vary considerably around the world.

Access the full report here for more detailed information, including regional breakdowns and category-specific analysis.

(Source: GBTA)

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Agoda search data highlights free cancellation and ‘pay at the hotel’ as some of the region’s most-used filters, reflecting preferences for convenience and greater control over travel plans.

While accommodation type remains the most-used search filter, accounting for 19% of all filter use across Asia, traveller priorities are diversifying. Both ‘free cancellation’ and ‘pay-at-hotel’ options have climbed into the top 10 most popular filters region-wide, highlighting the increasing importance travellers are placing on clear cancellation policies and flexible payment options, in addition to where they stay.

Agoda’s additional data show that this desire for flexibility extends throughout the trip-planning journey. Travellers aren’t just looking for refundable options; they are also tailoring their searches to convenient property features such as specific bed types, parking facilities, and proximity to public transport. Travellers are looking for accommodations that can easily cater to their specific travel styles, whether they are planning a spontaneous drive-to getaway, travelling with a large group, or mapping out a multi-stop itinerary.

“Search filters can reveal what travellers want to know before they book, whether that’s the right accommodation type, greater flexibility or confidence in the quality of a stay,” said Agoda Senior Vice President, Supply Andrew Smith. “For accommodation providers, these insights can be a roadmap for meeting evolving traveller expectations. Properties that make their value proposition clear, highlight the amenities guests care about most, and reduce booking friction will be better positioned to increase visibility, encourage conversion in an increasingly competitive market.”

(Source: Agoda)

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Highlights for the first half of 2026 (relative to H1 2025 — constant currency)

Group revenue increased 2.3%, to EUR3,334.9 million, up 5.1%2.

Operating income grew 0.6%, to EUR943.2 million.

Adjusted EBIT1 amounted to EUR1,011.5 million, increasing 4.9%2.

Diluted EPS3 increased 1%. Adjusted diluted EPS1 grew 7.3%2.

Free cash flow amounted to EUR472.2 million, increasing 0.8%. 

Net financial debt was EUR2,577.5 million at 30 June 2026 (1.0 times last-twelve-month EBITDA4).

Air IT Solutions segment delivered an 8.7% revenue expansion.

Hospitality and Other Solutions (HOS) revenue increased by 9.2%.

In Airline Distribution, revenue grew 1.1% in H1 2026.

Amadeus opened 2026 with solid growth and profitability. From March, the geopolitical situation in the Middle East has been significantly impacting global air traffic, with IATA announcing negative growth in April and May, the first time in 15 years (excluding the Covid period). 

Amadeus reports that the geopolitical situation has moderated its growth outlook, in line with IATA global air traffic expectations. 

Amadeus President & CEO Luis Maroto commented: “Amadeus delivered solid revenue and profit growth in the first half, while maintaining sustained commercial momentum across our businesses. Despite softening in volumes from March amid the geopolitical situation in the Middle East, both customer demand for our solutions and our commercial pipeline remained strong. The recent slowdown in air traffic expectations has had a limited impact on our outlook, highlighting the breadth and diversification of our business across customers, segments and geographies.”

For more information about operating and financial performance during the first half of 2026, visit https://amadeus.com/en/investors.

(Source: Amadeus)

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The technology giant’s latest earnings provided investors with the proof many had been seeking that massive investment in AI infrastructure is producing measurable commercial returns rather than simply increasing costs.

The company reported stronger-than-expected growth in its Azure platform, demonstrating that demand for AI services continues to accelerate and translate into higher revenues. 

Azure is Microsoft’s cloud computing platform, similar to Amazon Web Services (AWS) from Amazon and Google Cloud from Google.

Think of Azure as a vast global network of data centres that provides computing power, storage and artificial intelligence services over the internet.

For AI, this is especially important because it:

Hosts AI models such as OpenAI’s ChatGPT for businesses.

Provides the computing power needed to train and run AI systems.

Enables companies to build their own AI applications without needing to own expensive supercomputers.

Stores and processes enormous amounts of data.

The company also reaffirmed its commitment to substantial AI capital expenditure, while customer demand still exceeds available computing capacity, indicating that the industry’s expansion is far from complete.

Investors responded enthusiastically. Microsoft shares rose about 15 to 16 per cent following the announcement, adding almost US$450 billion in market value in a single trading session, the largest one-day increase ever recorded by a public company.

The results helped answer one of the market’s biggest questions following the recent semiconductor correction: would the world’s largest cloud providers begin cutting AI investment?

The answer was a clear no.

This demonstrated that AI is already driving significant growth and confirmed that companies intend to continue investing aggressively to meet rising demand.

Travel and Tourism’s relationship with AI.

Amazon added further support by reporting strong performance in Amazon Web Services while increasing planned AI investment to approximately US$220 billion for 2026. Although Meta’s results this week highlighted pressure on free cash flow and margins from heavy AI spending, it also maintained its long-term commitment to AI development.

Together, these announcements helped trigger a strong recovery in semiconductor shares, including South Korean leaders SK hynix and Samsung Electronics, both major suppliers of advanced high-bandwidth memory chips that power AI systems.

Why this matters for travel and tourism

Having worked in hotels and tourism for more than four decades, I have witnessed countless technological advances, from the arrival of computerised reservations to the internet, online booking platforms and mobile travel. Artificial intelligence represents the next major step in that evolution.

From my own experience, I have seen AI move rapidly from being an interesting concept to becoming a practical tool used every day across the travel and hospitality industry.

Hotels are increasingly using AI to respond more quickly to guest requests, improve customer communications and assist staff in delivering more personalised service. Airlines are applying AI to optimise schedules, predict maintenance needs, and improve operational efficiency, while destinations and travel companies are embracing intelligent systems to enhance customer engagement and simplify planning.

Perhaps most encouraging has been the enthusiasm shown by a new generation of hospitality professionals. Since the industry’s rebuilding following the Covid-19 pandemic, I have observed many younger colleagues naturally embracing AI in their daily work. Whether preparing reports, analysing data, improving communication, or responding more efficiently to guests, they use these tools not to replace personal service but to enhance it.

I have also seen AI increasingly supporting hotels, restaurants and airport front-line customer contacts. From information services and concierge assistance to handling requests and responding more quickly to service demands, AI is helping hospitality professionals spend less time on routine tasks and more time focusing on customers and guests.

In my view, this can only be positive.

The hospitality industry has always been about people. AI will never replace genuine warmth, empathy or personal attention. Instead, I believe it enables staff to spend more time doing what they do best: looking after customers.

Microsoft’s latest results therefore represent far more than another impressive technology earnings report. They reinforce confidence that investment in the digital infrastructure supporting AI will continue, giving travel and tourism businesses access to increasingly powerful tools that can improve service, productivity and the overall guest experience.

For an industry built on creating memorable experiences, that is welcome news indeed.

About the Author 
Andrew J Wood is a Bangkok-based travel writer, media executive and former hotel general manager with more than four decades of experience across Asia’s hospitality and tourism industries. A former Director of Skål International, Past President of Skål Asia and Past President of Skål International Thailand and Bangkok, he is currently Vice President of Skål International Bangkok. A respected commentator on travel, aviation, hospitality and business trends, he has received Skål International’s Order of Merit and Membre d’Honneur in recognition of his contribution to global tourism. His articles are widely published in leading regional and international media.

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