SAN DIEGO, California—Cloudbeds and Duetto released their Hotel Market Pulse report, providing performance and profitability analysis for hoteliers worldwide based on the data managed by both companies.
The analysis covers guest booking and hotel performance data from January 1 to July 31, 2025, comparing results to the same period in 2024, focusing on traveler booking behavior and hotel profitability.
Key Findings
Traveler booking behavior shifts
- OTAs hold strong as the leading demand channel: Distribution channels saw significant shifts, with Expedia pulling ahead in room night volume by nearly 12 percent year over year. Other OTAs, including Trip.com, Hotelbeds, and Despegar, each increased volume by more than 35 percent year over year. These gains came at the expense of other OTAs, including Booking.com, Agoda, and Vrbo.
- Softening pricing power: For many operators, performance lagged expectations as pricing power softened, and demand cooled. The global average daily rate rose modestly on Booking.com and Expedia, but dropped 10 percent on Vrbo, 5 percent on Hotelbeds, and 2 percent on Airbnb. Adjusted for inflation, “real ADR” actually declined for many properties.
- Shorter stays: Data showed a consistent downward trend in the Average Length of Stay (ALOS) every month from January to July 2025 compared with 2024, potentially due to tighter budgets and the shift toward shorter, more frequent ‘microcations’.
Hotel profitability and performance
- TRevPAR growth: Total Revenue per Available Room (TRevPAR) indicated overall performance improvement, with Latin America leading with a 4.6 percent increase, followed by North America (up 3.5 percent) and Europe (up 2.5 percent). Food and beverage (F&B) remained the leader and primary driver of ancillary revenue across all regions.
- GOPPAR improvement: Gross Operating Profit Per Available Room (GOPPAR) increased year over year in all regions. North America led with the biggest gain of 2.9 percent, followed by Latin America (up 1.3 percent) and Europe (up 1.2 percent).
- Labor remains the largest expense: Operating costs continued to be pressured by rising labor expenses, which remained the largest expense for hotels. North America saw labor costs increase by 4.6 percent (reaching 47 percent of total operating costs), while Europe saw a 3.9 percent increase (now 60 percent of total operating costs).
“Understanding where and how demand is shifting is critical for every hotel leader today,” said Rafael Blanes, chief growth officer of Cloudbeds. “At Cloudbeds, we believe data is human—it reflects real traveler intent and behavior. This collaboration with Duetto transforms that data into contextual intelligence, helping hoteliers anticipate change, make smarter decisions, and unlock more profitable growth.”
“By combining Duetto’s data with Cloudbeds’ channel insights, we’re helping hoteliers understand how and why traveler behavior is changing, and how this impacts their bottom line,” added Jason Hofmann, chief customer officer of Duetto.