Market Trends

🌎 Europe, Sep 22, 2025: Travel and tourism, projected by Oxford Economics to outpace finance and manufacturing from 2024-2029, are crucial for Europe's economy. With €400 billion in receipts, the sector rivals a mid-sized EU state's GDP. SMEs generate 81% of hospitality’s value and 85% of jobs. Yet, a digital divide threatens independent businesses. Policies should focus on upskilling and innovation to prevent industry bifurcation and leverage tourism’s strategic cultural and economic significance.

🏨 In August 2025, the U.S. hotel industry, based in Arlington, Virginia, displayed mixed results. Occupancy fell to 66.1%, a decrease of 1.3% from August 2024, while ADR rose slightly by 0.3% to $158.93. RevPAR dropped by 1.0% to $105.06. New York City had the highest occupancy at 86.0%, and Seattle followed at 82.2%. Phoenix and Houston reported the lowest occupancy levels, with Houston impacted by Hurricane Beryl's aftermath.

🧖‍♀️ Alfredo Gonzalez, JW Marriott Orlando, and Toni Yates, The Spa at Hotel Florence, report steady spa revenue growth, emphasizing wellness trends. Alain Negueloua notes 80-minute massages as new standards. Maggy Dunphy observes a shift to day-use options, highlighting guests' price sensitivity. Sustainability is a priority, with Eminence Organic Skin Care planting over 20,000 trees. Popular treatments include CBD massages, HydraFacials, and touchless options like cryotherapy. Spa designs blend luxury with nature, fostering tranquility and guest satisfaction.

📈 Preferred Hotels & Resorts, from 2022 to 2024 in North America, outperformed competitors with a RevPAR Index of 136%-139% for resorts, 111%-119% for primary markets, and 102%-107% for secondary markets. Occupancy and ADR were key drivers. The cost to hotels was under 1.7% of gross rooms revenue, compared to 11% for other luxury brands, showcasing significant cost efficiency. The study, conducted by HVS, utilized STR data.

🌍 Civitatis aims for a 40% increase in registered travel agencies by 2025. 🌍 With 46,000 agencies currently on board since its 2018 launch, it emphasizes personalized experiences. Key markets: Italy, Spain, Mexico, Argentina, and Brazil. 📈 B2B sales director Verónica de Iscar highlights growth through local support, training, and partnerships. Future focus includes Japan, Thailand, and Latin America. Technology, via proprietary API, is crucial for scalable collaborations and enhancing agency sales.

🏆 When the World Cup comes to host cities, stadiums fill with 50,000 to 80,000 fans, but some locations offer as few as 13,000 hotel rooms. Revenue managers need strategic approaches to handle this discrepancy. Key strategies include implementing match-day calendars, monitoring supply-demand imbalances (e.g., 60,000 stadium seats vs. 30,000 rooms), enforcing strict booking policies, optimizing lengths of stay, and leveraging AI. Hotels must prepare operational teams and focus on guest experience to ensure long-term success.

📅 Elie Maalouf, CEO of IHG Hotels & Resorts, spoke at the Skift Global Forum emphasizing growth in the East, especially the Middle East, Southeast Asia, and China. Japan saw 36.9 million international visitors in 2024, a 47% increase from 2023. Only 5% of Japanese hotels are branded internationally. IHG plans to double its 50 hotels in Japan. Globally, IHG has 6,730 hotels in over 100 countries, with 2,300 more in development. IHG acquired Ruby Hotels for over $300 million in 2023.

🛫 Fewer than 10% of bookings in Google AI Mode are through OTAs, while 56% are direct with hotels or suppliers. Propellic's study, analyzing 300+ booking journeys and 71,000 words of transcripts, highlights the need for a strong GEO strategy. Google Business Profiles are increasingly critical, acting as primary storefronts. Sundar Pichai confirms AI Mode as Google's future, shifting traditional search paradigms. Propellic CEO, Brennen Bliss, emphasizes controlling the AI ecosystem's collapsed funnel for competitive advantage.

🗺️ The UK short-term rental market, as of September 2025, shows mixed trends. Average daily rates (ADRs) are up: November ADRs hit £159, a 7% growth year-on-year. September and October rates grew by 4% and 5% respectively. Forward bookings dipped 5% in September and 3% in November, while October saw a 2% rise. Lead times decreased by 6% in September and 4% in October and November. Key Data launched new tools to aid property managers amid these shifts.