Hotel bookings shift as travellers seek value & shorter stays in 2025
New research highlights changes in global hotel booking behaviour and the effect of price sensitivity on revenues and profitability across major regions in 2025.
Shifting channels
Online travel agencies (OTAs) remain the primary source of demand for hotel bookings, but significant changes have emerged among the major platforms. The data shows that Expedia increased its room night volume by nearly 12% year on year, surpassing other OTAs. Trip.com, Hotelbeds, and Despegar each reported gains of more than 35% during the same period. However, these increases came at the expense of platforms such as Booking.com, Agoda, and Vrbo, which saw relative reductions in booking volume.
Pricing and stay trends
The analysis reveals that many hotel operators experienced lower-than-expected performance as overall pricing power weakened and demand softened in key segments. The global average daily rate (ADR) improved only slightly on Booking.com and Expedia. In contrast, ADRs declined by 10% on Vrbo, 5% on Hotelbeds, and 2% on Airbnb. Adjusted for inflation, many properties recorded a decrease in real ADR, impacting revenue expectations for the period under review.
The average length of stay (ALOS) also dropped consistently each month from January to July 2025 compared to the same months of 2024. This sustained decrease is attributed to heightened price sensitivity among travellers and a rise in shorter, more frequent trips, sometimes called 'microcations'.
Regional performance
Total Revenue per Available Room (TRevPAR) grew on a global basis, with performance differing across regions. Latin America led with a 4.6% increase, followed by North America at 3.5%, and Europe at 2.5%. Food and beverage (F&B) sales continued as the principal driver of ancillary revenue for hotels in all regions, reinforcing the importance of non-room income streams for property-level profitability.
Gross Operating Profit Per Available Room (GOPPAR) also improved in all regions. North America posted the largest annual gain, rising 2.9%, while Latin America and Europe recorded increases of 1.3% and 1.2% respectively.
Cost pressures
Labour costs remain the greatest operational expense for hotels and showed ongoing upward pressure in 2025. In North America, labour costs increased 4.6%, making up 47% of total operating costs for hotel properties. In Europe, labour expenses climbed by 3.9% and have now reached 60% of total operational costs, underlining the continuing challenge these expenses present for profitability management.
"Understanding where and how demand is shifting is critical for every hotel leader today," said Rafael Blanes, Chief Growth Officer, Cloudbeds. "At Cloudbeds, we believe data is human - it reflects real traveler intent and behavior. This collaboration with Duetto transforms that data into contextual intelligence, helping hoteliers anticipate change, make smarter decisions, and unlock more profitable growth."
"By combining Duetto's data with Cloudbeds' channel insights, we're helping hoteliers understand how and why traveler behavior is changing, and how this impacts their bottom line," said Jason Hofmann, Chief Customer Officer, Duetto.
