The global travel and hospitality industry is entering yet another cycle of uncertainty, shaped by economic headwinds, geopolitical instability and shifting consumer demand patterns, according to a new report from Skift, a media and intelligence company, and ZS, a consulting and technology concern.

For decades, said the report, airlines, hotels, and rental car providers depended on core offerings—seats, rooms, and vehicles—as their primary revenue drivers. However, as consolidation narrows competition and consumer behaviors evolve, this traditional model is proving fragile.

To remain competitive, said the report, companies must diversify revenue streams by monetizing noncore assets—those that extend beyond the core travel experience yet leverage existing customer bases, platforms, and capabilities. The report introduces the 5As framework—a structured model for identifying, evaluating, and operationalizing incremental revenue opportunities.

Built on a survey of 277 senior travel executives across North America, the study highlights both the urgency and the untapped potential of revenue diversification. The Need for Diversification Survey results reveal near-universal recognition of this imperative. It revealed that 89% of executives agree travel brands must broaden their revenue models. While 75% have identified noncore assets to monetize, only 32% describe their efforts as “very innovative,” underscoring a gap between intent and execution. An encouraging note,  said the report, is that 86% report at least moderate bottom-line impact from monetization, with over 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 indicates both a challenge and an opportunity: travel brands must adapt proven practices from other sectors while tailoring them to unique industry dynamics.

The 5As Framework, said the report, 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% 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’s 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.

While enthusiasm is high, said the report, challenges remain with 63% of executives worrying that noncore ventures may distract from the core business. To address these barriers, the report identifies six go-to-market imperatives: 1. Commit leadership and resources. 2. Audit existing assets enterprise-wide. 3. Align initiatives with brand strategy. 4. Proactively manage compliance and privacy. 5. Foster rapid experimentation. 6. Maintain a long-term view.