Duetto, the world’s leading revenue management software provider for the hospitality industry, has unveiled its 2025 hospitality trends report, revealing that increased costs, AI, personalization, evolving revenue metrics, and data, are the biggest challenges the industry will face this year, according to a global survey of hoteliers.
The report highlights persistent trends that have grown in influence and new opportunities hoteliers can take advantage of, with a unified opinion that change must be embraced to remain competitive — especially when it comes to technological advancements.
Key Trends Shaping 2025
1. Volatility, Generational Shifts, and Increased Costs
Geopolitical risks, shifting guest expectations, and rising overheads are forcing hoteliers to rethink traditional strategies, with increased costs seen as the biggest challenge this year. Darrell Stark, VP Sales, Revenue & Distribution Strategy, Noble House Hotels & Resorts comments, “Rising labor costs continue to challenge hoteliers. It’s not just about the occupancy rate — it’s about the market mix within the hotel.”
Despite instability, investment in revenue technology remains robust, with 54.5% of survey respondents planning to purchase a revenue management system (RMS) in 2025, while 61.1% aim to increase their technology budgets.
2. The Growing Importance of AI
AI is a powerful tool for revenue management, with predictive forecasting, dynamic pricing, and competitive intelligence seen as its most impactful features. Despite importance and adoption growing, hoteliers are still on the fence when it comes to trusting AI recommendations without human input.
“AI is no longer just a tool, it’s the future of modern revenue management,” says Jordan Hollander, Co-Founder, Hotel Tech Report.
3. Personalization and Guest Experience
Personalization is a critical focus, and its importance will continue to grow this year. The digital guest journey remains a cornerstone for success, with AI helping hoteliers craft tailored experiences that enhance guest satisfaction, including transparent, personalized pricing.
Talking to this, Christian Pirodon, Founder, CP Hospitality, adds, “AI-powered platforms can analyze customer data to deliver tailored experiences that boost satisfaction and loyalty.”
4. Evolving Revenue Metrics
Hoteliers are looking beyond traditional KPIs such as revenue per available room (RevPAR). Total revenue per occupied room (TRevPOR) and gross operating profit (GOP) are being more widely adopted, offering a clearer view of overall profitability.
“These metrics ensure there’s collaboration across all commercial departments, and that all teams align with broader profitability objectives,” comments Christian Ortiz, Corporate DORM – Mexico, Sandos Hotels & Resorts.
5. The Power of Data
Data is a core driving force behind revenue strategies, with revenue managers shifting beyond merely collecting data to integrating it into decision-making processes and using it to generate actionable insights, like automated pricing recommendations.
Michael McNames, Director of Revenue Management, Sandman Hotel Group, adds, “Integrating competitive data directly into decision-making processes will revolutionize the speed and efficiency of revenue strategies.”
Empowering Revenue Strategies
These insights are drawn from Duetto’s 2025 hospitality trends report, which analyzes factors impacting the industry this year. It features perspectives from global revenue management professionals and leading hospitality voices, including executives from Hotel Tech Report, Sandos Hotels & Resorts, CP Hospitality, Noble House Hotels & Resorts, the Sandman Hotel Group, and Grand Metropolitan Hotels.
“For the first time, we’ve expanded our scope to include meetings and events businesses and deeper insights from casinos. These sectors face unique challenges and opportunities that differ from hotels, but their perspectives offer fresh approaches that are of value to everyone working in revenue management,” commented David Woolenberg, CEO, Duetto.
From embracing AI to redefining revenue metrics, the report provides a roadmap for turning today’s enduring challenges into tomorrow’s successes. With real-world applications and forward-thinking strategies, it delivers actionable tools to help hotels, casinos, and resorts stay ahead of the competition and thrive in 2025.
