HOTELIERS MUST EMBRACE technological advancements to stay competitive as increased costs, AI, personalization, evolving revenue metrics and data pose major challenges for the hospitality industry this year, according to Duetto, a revenue management software provider. Geopolitical risks, shifting guest expectations and rising costs are prompting hoteliers to rethink traditional strategies.
Duetto’s 2025 hospitality trends report, based on a global survey of hoteliers, features insights from revenue management professionals and leaders from Hotel Tech Report, Sandos Hotels & Resorts, CP Hospitality, Noble House Hotels & Resorts, 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,” said David Woolenberg, Duetto’s CEO. “These sectors face unique challenges and opportunities, and their perspectives offer fresh approaches valuable to everyone working in revenue management.”
Duetto survey respondents identify increased costs as the biggest challenge this year. “Rising labor costs continue to challenge hoteliers. It’s not just about occupancy—it’s about market mix,” said Darrell Stark, Noble House Hotels & Resorts’ vice president for sales, revenue and distribution strategy.
Despite instability, investment in revenue technology remains strong, with 54.5 percent of respondents planning to purchase a revenue management system in 2025 and 61.1 percent intending to increase technology budgets. Duetto found that AI is a key tool for revenue management, with predictive forecasting, dynamic pricing and competitive intelligence as its top features. While adoption is growing, hoteliers remain cautious about fully trusting AI recommendations without human input.
“AI is no longer just a tool, it’s the future of modern revenue management,” said Jordan Hollander, Hotel Tech Report’s co-founder.
Personalization remains a key focus and will grow this year, the report noted. The digital guest journey is central to success, with AI enabling tailored experiences and personalized pricing. Christian Pirodon, CP Hospitality’s founder, stated that AI-powered platforms can analyze customer data to deliver tailored experiences that boost satisfaction and loyalty.
Hoteliers are moving beyond traditional KPIs like RevPAR, with TRevPOR and GOP gaining traction for a clearer view of profitability.
“These metrics ensure collaboration across commercial departments, aligning teams with broader profitability goals,” said Christian Ortiz, Sandos Hotels & Resorts’ corporate DORM – Mexico.
Data drives revenue strategies, with managers moving from data collection to integration in decision-making and generating actionable insights, such as automated pricing.
“Integrating competitive data into decision-making will revolutionize the speed and efficiency of revenue strategies,” said Michael McNames, Sandman Hotel Group’s director of revenue management.
The report outlines a roadmap for turning current challenges into future successes, offering strategies and tools to help hotels, casinos, and resorts stay competitive and thrive in 2025.
A recent Amadeus study found that U.S. travelers face ongoing frustrations in 2024, including delays, planning, costs, and airport experiences. While technology can address many issues, it doesn't solve them all.
