content@duettocloud.com (Duetto Content Team) - 10 Minutes News for Hoteliers

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4 min

US Hotels Face Rising Labor Costs, Now 43% of Revenue at Unionized Properties, Challenging RevPAR Focus

📈 US hotels' labor costs hit $123 billion in 2024, marking a 20% rise from 2019. Labor at unionized hotels now consumes 43% of revenue compared to 33.5% at non-union hotels. Optimal hotel profitability is at 65-70% occupancy, not maximum. CPOR became crucial in 2025; labor costs per room rose between 2% and 11.2%. Hotels achieving profit focus on CPOR and GOPPAR metrics, aligning revenue with operational efficiency, rather than solely RevPAR.

5 min

Hotels Urged to Adopt 'Performance Engineering' for Profit-Focused Operations Amid Declining 2025 Flow-Through Rates

🛀 2025: hotels faced intense margin pressure, with The Americas' flow-through rates dropping to 18%. Labor and operating costs surged while booking behaviors shifted. Despite RevPAR increases, profitability declined, revealing its limitations as a metric. The industry needed a shift towards performance engineering, a discipline embedding profit-led operations. This requires four shifts: expanding datasets, aligning team mindsets, connecting actions to insights, and employing the right technology. The new approach focuses on GOPPAR for total profitability, not just revenue.

5 min

Hotels Must Shift Focus from RevPAR to Profitability Metrics like GOP Index for Sustained Financial Health

💰 A room sold at $150 through Booking.com nets $120-$127 after a 15-20% commission, compared to $150 from a direct sale. RevPAR doesn’t show the $23-$30 revenue gap. Occupancy-driven growth yields 30% profit flow-through, while rate-driven growth delivers 50-60%. GOP Index benchmarks profitability against competitors. TRevPAR accounts for total revenue, including ancillary services. Benchmarking infrastructure now supports full P&L metrics. Performance engineering focuses on overall hotel profitability, aligning team decisions with profit impact.

4 min

Rising Costs and Distribution Complexity Undermine RevPAR's Effectiveness in Measuring Hotel Profitability, Industry Experts Urge Shift to GOPPAR.

📈 RevPAR, adopted 25 years ago, faces challenges as US hotel labor costs rose 20% from 2019-2024, and OTA commissions take 15-20% per booking. This metric correlates with GOPPAR, but not linearly; a small RevPAR change leads to a 1.5 to 2.0 times larger GOPPAR change. RevPAR growth of $5 through occupancy sees 30% profit flow-through, versus 60% through rate growth with stable occupancy. The shift to profit-centric metrics like GOPPAR is crucial.

8 min

Growing Hotel Portfolios Face Challenges Without Revenue Management Systems, Impacting Profitability as RevPAR Outpaces Costs

🏨 Since 2019, global RevPAR grew 19% while booking costs per room rose 25% and labor costs increased by 8–11% annually. Many hotel portfolios struggle with manual revenue management, slowing decisions and reducing profit visibility. A modern Revenue Management System (RMS) addresses these challenges, ensuring consistent pricing logic, scalable workflows, and improved coordination without adding complexity. Investing in an RMS before operational issues arise can enhance revenue strategy and profit outcomes across multiple properties.

6 min

Independent Hotels Struggle with Revenue Loss Due to Reactive Pricing Amidst Rapid Demand Shifts and Manual Systems

🏨 Independent hotels face revenue challenges due to reactive pricing. While occupancy isn't always visible, the market moves fast, demanding quicker pricing responses. Manual processes slow teams down, making it hard to react to demand signals like sudden booking surges or competitor rate changes. Proactive revenue management, including automation and open pricing models, helps independent hotels adjust rates efficiently and effectively, improving ADR and profitability by reacting swiftly to market shifts instead of relying on outdated systems.

12 min

Hotel Industry Urged to Shift Focus from RevPAR to Profit-Centric Metrics Amid Rising Labor Costs and Market Changes

📈 In 2026, U.S. hotels are grappling with a 20% labor cost rise since 2019. Labor now consumes 43% of revenue at unionized properties. Revenue from occupancy growth yields just 30% to the bottom line, whereas rate growth (ADR) achieves 60% profit flow-through. GOPPAR shifts twice as much as RevPAR per unit change. Amidst rising distribution costs, the industry must pivot from RevPAR to profit-centric metrics like GOPPAR and CPOR to ensure profitability.

6 min

Independent Hotels Improve Revenue by Adopting Automation, Dynamic Pricing, and Aligned Forecasting Systems

💸 Automation and smart pricing are transforming hotel revenue management. Independent hotels face high demand, with only one revenue manager handling pricing, forecasting, and reporting. Intelligent RMS enables continuous updates based on demand, boosting efficiency. Dynamic pricing, such as Open Pricing, adapts rates continuously, leading to significant gains. Heure Bleue Palais saw a 37% ADR and 115% RevPAR increase, while The Remington Orange boosted ADR by 10%. Accurate forecasts align hotel operations, enhancing decision-making and performance.

7 min

Hospitality Leaders Advocate for Profit-Driven Strategies Beyond Room Rates at Global Summit, Emphasizing Data and Team Alignment

🏨 Five senior hospitality leaders convened at the PERFORM summit to discuss shifting hotels toward profit-driven strategies. Chris Cylke, Irene Villafranca, Michael McNames, Katie Moro, and Glenn Haussman highlighted the need for data-driven decision-making and cross-departmental alignment. Minor Hotels, for example, now measures Net RevPAR and GOPPAR. Emphasizing profits over room rates, the panel cited smarter pricing during the Miami F1 event and U.S. World Cup as key strategies. The discussion underlined the industry's evolving focus on total guest spend.

6 min

Centralized Pricing Enhances Multi-Property Hotel Revenue Management by Streamlining Processes and Maintaining Local Market Responsiveness

🏨 Centralized hotel pricing systems can streamline management across multiple properties by efficiently automating routine tasks, like rate updates and channel changes, freeing up revenue managers to focus on strategic decisions. This approach maintains consistency, ensures local market responsiveness, and leverages automation to handle repetitive tasks, optimizing resources in portfolios of up to 10 hotels. By standardizing signals and defining a clear revenue strategy, performance becomes easier to track, enhancing clarity and decision-making.

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