- Cloudbeds: OTAs gain as direct booking lost ground in 2025
- OTA share of independent hotel bookings rose to 63.4 percent.
- Independents’ global occupancy fell 0.6 percent.
INDEPENDENT HOTELS’ PERFORMANCE declined in 2025 as online travel agencies increased their share of bookings and market influence, according to Cloudbeds. Regional trends and changes in traveler behavior, however, present opportunities for operators who adjust their strategies.
The Cloudbeds “2026 State of Independent Hotels Report” found that demand for independent hotels weakened in 2025. OTAs accounted for 63.4 percent of bookings—rising to nearly 80 percent in some markets—while their cancellation rate of 21.8 percent was more than double the 10.6 percent for direct bookings.
“2025 told many different stories for independent hotels, and that divergence is only the beginning,” said Adam Harris, CEO of Cloudbeds. “With AI reshaping discovery, OTA dependence deepening and margin pressure mounting, independent lodging has never needed clarity more. This report gives operators a clearer view of the forces reshaping their market and provides a path forward.”
Global occupancy at independent hotels fell 0.6 percent year-over-year, while room rates and revenue per room declined 5.8 percent and 5.4 percent, respectively, lagging branded hotels.
The fourth annual Cloudbeds report, based on 90 million bookings across properties in 180 countries, shows mixed regional performance in 2025. North America declined overall, with RevPAR up 6 percent in Canada but down 4.4 percent in the U.S. EMEA posted gains, with ADR rising 6 percent and RevPAR up 3.9 percent, while Asia-Pacific recorded the steepest declines, with ADR falling 16.2 percent and RevPAR dropping 17.5 percent.
Travelers booked an average of 40 days in advance in 2025, up from 38 days in 2023, with booking windows extending to 48 days in North America and 47 days in EMEA. The average cancellation window increased to 39 days from 35, giving hotels more time to resell rooms.
More than two-thirds of bookings were for one- to two-night stays, while seven-night bookings rose 25 percent year-over-year, indicating growing demand for longer stays. The report also includes regional performance, country insights, booking behavior and trend analysis, along with recommendations for independent operators.
A recent study by TakeUp said independent operators must align with guest intent through positioning, targeted marketing and context-driven pricing.
