Hotels overcoming challenges to remain profitable in 2025

As rate growth remains low or stagnant, hotels will rely on ecommerce, actionable data insights, and generative AI to maintain profitability

Hotel performance in 2025 is expected to see slower rate growth, with a more positive RevPAR outlook in the US than Europe. However, the post-pandemic bounce is unlikely to continue. Robert Holland, Managing Director at HotelPartner Revenue Management, noted that hotels will need to adapt creatively to rising costs while maintaining service. He also expects them to use guest data and local insights to create tailored revenue strategies and collaborate with technology to boost profitability.

Key takeaways

• A key focus is to follow the eCommerce model and capture more ancillary revenue during the booking process;
• Beyond shopping carts and the initial booking, business intelligence (BI) is becoming increasingly crucial in hotel operations;
• Traditionally, BI solutions have been limited to data collection and reporting. However, John Burns, President of Hospitality Technology Consulting, explains that these tools are now set to make automatic recommendations or trigger actions;
• Dynamic pricing is the most common application, but automation and recommendations are also being implemented in areas like marketing campaigns, labor scheduling, and inventory management.

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