Microsoft has confirmed price increases of between 9% and 33% across most Microsoft 365 Business and Enterprise plans, effective 1 July 2026. The changes, announced via Microsoft’s licensing FAQ, will hit Business Basic (up 16.7% to US$7/user/month) and Business Standard (up 12% to US$14/user/month) hardest. Business Premium stays flat at US$22.

For hospitality businesses running Microsoft 365 across front desk, reservations, and back-office teams, this adds up fast. A 50-seat venue on Business Standard is looking at an extra US$900 a year — not catastrophic, but not nothing either. The silver lining is that Microsoft is bundling in Defender for Office 365 Plan 1 and expanded Intune management tools, which many hospitality operators were paying for separately anyway. Mailbox storage also jumps from 50GB to 100GB across Business plans.

The practical move here is simple: if your Microsoft 365 renewal falls after 1 July, talk to your IT provider about renewing early. Microsoft has confirmed that customers who renew before the deadline can lock in current pricing until their next renewal cycle. If you’re on a monthly plan, consider switching to an annual or even 36-month term to bank the savings.

If you’re unsure what plan you’re on or when your renewal is due, All IT Services can review your Microsoft 365 licensing and help you decide whether an early renewal makes sense for your setup.