Hospitality revenue management software provider Duetto has unveiled its 2025 hospitality trends report, revealing that increased costs, AI, personalization, evolving revenue metrics and data are the biggest challenges the industry will face this year, according to the global survey of hoteliers.

The report highlights persistent trends that have grown in influence and new opportunities hoteliers can take advantage of, with a unified opinion that change must be embraced to remain competitive—especially when it comes to technological advancements.

Key trends shaping 2025

1. Volatility, generational shifts and increased costs

Geopolitical risks, shifting guest expectations and rising overheads are forcing hoteliers to rethink traditional strategies, with increased costs seen as the biggest challenge this year.

“Rising labor costs continue to challenge hoteliers,” said Darrell Stark, VP sales, revenue & distribution strategy, Noble House Hotels & Resorts. “It’s not just about the occupancy rate—it’s about the market mix within the hotel.”

Despite the instability, investment in revenue technology remains robust, with 54.5% of survey respondents planning to purchase a revenue management system (RMS) in 2025, while 61.1% aim to increase their technology budgets.

2. The growing importance of AI

AI is a powerful tool for revenue management, with predictive forecasting, dynamic pricing and competitive intelligence seen as its most impactful features. Despite importance and adoption growing, hoteliers are still on the fence when it comes to trusting AI recommendations without human input.

3. Personalization and guest experience

Personalization is a critical focus, and its importance will continue to grow this year. The digital guest journey remains a cornerstone for success, with AI helping hoteliers craft tailored experiences that enhance guest satisfaction, including transparent, personalized pricing.

“AI-powered platforms can analyze customer data to deliver tailored experiences that boost satisfaction and loyalty,” said Christian Pirodon, founder, CP Hospitality.

4. Evolving revenue metrics

Hoteliers are looking beyond traditional KPIs such as RevPAR. total revenue per occupied room (TRevPOR) and gross operating profit (GOP) are being more widely adopted, offering a clearer view of overall profitability.

“These metrics ensure there’s collaboration across all commercial departments and that all teams align with broader profitability objectives,” said Christian Ortiz, corporate DORM – Mexico, Sandos Hotels & Resorts.

5. The power of data

Data is a core driving force behind revenue strategies, with revenue managers shifting beyond merely collecting data to integrating it into decision-making processes and using it to generate actionable insights, like automated pricing recommendations.

Michael McNames, director, revenue management, Sandman Hotel Group, added, “Integrating competitive data directly into decision-making processes will revolutionize the speed and efficiency of revenue strategies.”

“For the first time, we’ve expanded our scope to include meetings and events businesses and deeper insights from casinos,” said David Woolenberg, CEO, Duetto. “These sectors face unique challenges and opportunities that differ from hotels, but their perspectives offer fresh approaches that are of value to everyone working in revenue management.”

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