Market Trends

🏨 Aug 18, 2025, Hotel industry executives signal cautious optimism despite challenges. Q3 sees economic uncertainty and flat RevPAR, but Q4 promises growth: Marriott projects +1.5% to +2.5%, Hilton flat to +2%, Hyatt 1% to 3%. Luxury segments outperform globally, and group bookings rise for 2026, with Marriott up ~8%. Economic and government pullbacks persist, yet event calendars and holiday shifts are key Q4 drivers, enhancing demand.

🗺️ Aug 18, 2025, the travel industry's digital transformation is set to reach $956 billion. Online bookings will comprise 75% by 2029, with 54% starting on search engines like Google or Bing. Key factors include reviews, flexibility, and location, while cart abandonment remains high at 41% due to purchase hesitations and limited payment options. AI tools appeal to nearly half of Gen Z, but a third of Baby Boomers reject them. Personalization is crucial, especially in the U.S.

📊 Aug 18, 2025—Bookboost's report on data-driven marketing in hospitality surveyed 60+ global hotel professionals, revealing significant gaps in marketing execution. 25% of hotels don't segment their audience, and only 12% use WhatsApp marketing. Just 12% have centralized, actionable guest data. Nearly half of hotels struggle with personalization due to poor segmentation and automation. To improve, focus on high-value guest segments, clean data, and utilize channels like WhatsApp.

🚧 Aug 18, 2025, in the U.S.: Only 139,000 of 615,000 planned hotel rooms are under construction due to high borrowing costs nearing 9–10%, volatile material prices, and labor shortages. Hotel supply growth was 0.2% in 2023 and 0.5% in 2024, likely staying below 1% through 2026. Developers shift to conversions and renovations as new builds stall, expecting interest rate relief by late 2026.

💰 Aug 18, 2025, CBRE’s report reveals key data about the hotel industry: major hotel brands expanded portfolios at a 7% CAGR and loyalty memberships at 15% CAGR over the past decade. Despite this, nominal RevPAR rose 9.3% since 2019, but real RevPAR fell by 10.9% due to inflation. Only 28% of brands outperformed average RevPAR since 2019, down from 52% before. Upper-midscale segments excel, while midscale and economy chains struggle with RevPAR declines.

🏨 Hospitality industry employees face increased turnover during summer months, specifically June, July, and August, with rates rising to 3.56% compared to 3.14% in other months. The leisure and hospitality sector sees the highest summer attrition at 5.04%, significantly more than the retail trade sector at 4.87%. Key retention strategies include frequent check-ins, transparent communication, and 'stay interviews' to address employees' concerns early. Implementing these in spring can optimize the working environment before the busy season.