Investing in people and technology to navigate 2026

We’re entering 2026 with business confidence at a five year low, as just 26% of hospitality leaders feel upbeat about the prospects for their business, according to the latest quarterly Business Confidence Survey from CGA by NIQ and Sona. The number of leaders feeling optimistic about the future of hospitality in general slipped by five percentage points to 13% - these aren’t the kind of stats anyone wants to see.

With the average price of a pint well north of £5 and further pressure being placed on consumer spend there are more challenges ahead. But here’s the thing, hospitality always has and always will find a way to bounce back. There are no easy answers to any of this but there are strategies that can make a real difference. For hotel operators, three stand out as we move into 2026: investing in your people and embracing technology.

Looking after the people that make your business what it is

Your wages may be your biggest cost but your people are your greatest asset. From April the hourly rate for over 21s will go up by 50p to £12.71 and by 85p for 18-20s to £10.85. While rewarding for staff, it is more money that operators have to find against a backdrop of continually rising costs and pressured consumer spend.

So, what can operators do? Focus on retention. Maintaining your existing workforce and offering a clear career path provides the foundation for building high-performing teams and protecting the bottom line. That was the clear finding in the first Sona and Pineapple Hospitality People Insights Report H1 2025. The benchmark report is based on data from more than 35,000 hospitality employees and the message is straightforward – team stability at management level, driven by internal progression is the pathway to better retention and performance.

The report shows a clear link between retention and progression. Over the last 12 months staff turnover improved, it is down to 67% from 75% at the same time 23 months ago. Meanwhile, the number of General Managers, Assistant Managers and Head Chefs being promoted into their roles has all gone up. These higher rates contribute to lower staff turnover, but on the flip side, the data indicates a correlation between vacancies for those three positions and higher churn across all departments.

It’s not necessarily news that if your team feel they are being recognised and rewarded for their efforts then they are likely to stay and that will save you the time and expense of further recruitment. But what is new, is having the data to prove it, and used with the board to evidence decision making.

Training and developing your teams

Retention is not just about money and promotion, it’s about personal development and purpose. People want to feel part of something they believe in, and that means creating an environment where they feel supported and valued – and technology can help.

The right platform can make it easier to have structured performance conversations, answer policy questions and give real-time feedback. When managers have the right conversations at the right time, trust builds and engagement grows. The result: lower turnover, stronger teams, happier customers leading to better customer experiences and repeat business.

Understanding AI

Business leaders increasingly understand the benefits and efficiencies that AI can bring to their business, with 72% likely to implement AI solutions in the next 12 months, as discovered in the Q4 2025 Business Confidence Survey from CGA by NIQ and Sona. However, financial constraints may add pressure to the implementation.

The survey indicates that the use of AI is currently heaviest in data and marketing, with close to half (49%) of leaders saying it is helping with data-related functions, like sales forecasts and reports.

However, there is huge, untapped potential in many other areas of hospitality like staff shift scheduling (27%), marketing strategies (27%), HR functions (27%) and stock optimisation (12%). Some still see AI as a threat to the workforce, whereas in reality it is a tool to help an operation run more effectively. AI can provide real time information and data from various sources to help managers make informed decisions with confidence.

A number of our clients assign AI Champions within the workforce to enable teams to understand, explain and implement AI solutions. When trained and confident, staff become more motivated to work together – and that has to be good for a sector having to constantly adapt to a challenging trading environment.

The challenges are well documented but as 2026 dawns, I’m excited by the possibilities that people and technology bring. You can’t have one without the other but together, they’ll build resilience and set businesses up for long-term success. We know it’s tough but collaboration and find new ways of doing things is what hotel operators and hospitality do best.

Written by Paul Watson, VP of Hospitality at Sona