Duetto, the world's leading provider of revenue management software for the hospitality industry, has unveiled its 2025 hospitality trends report, revealing that rising costs, artificial intelligence, personalization, evolving revenue metrics and data are the biggest challenges the industry will face this year, according to a global survey of hoteliers.

The report highlights enduring trends that are growing in influence and new opportunities for hoteliers to capitalize on, with a consensus that change must be embraced to remain competitive, especially when it comes to technological advancements.

Key Trends Shaping 2025

1. Volatility, Generational Changes and Increasing Costs

Geopolitical risks, changing guest expectations and rising overhead costs are forcing hoteliers to rethink traditional strategies, while rising costs are seen as the biggest challenge this year. Darrell Stark, Vice President of Sales, Revenue and Distribution Strategy at Noble House Hotels & Resorts, said: “Rising labor costs continue to challenge hoteliers. It's not just about occupancy, it's about the market mix within the hotel.”

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

2. Growing Importance of Artificial Intelligence

AI is a powerful tool for revenue management, with predictive forecasting, dynamic pricing and competitive analysis being its most effective elements. Despite its growing importance and use, hoteliers are still hesitant to rely on AI recommendations without human input.

“AI is no longer just a tool, it is the future of modern revenue management,” says Jordan Hollander, Co-Founder of Hotel Tech Report.

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, and AI is helping hoteliers create tailored experiences that increase guest satisfaction, including transparent, personalized pricing.

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

4. Evolving Revenue Metrics

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

“These metrics ensure that there is collaboration between all commercial departments and that all teams are aligned with broader profitability goals,” says Christian Ortiz, Corporate DORM, Sandos Hotels & Resorts Mexico.

5. Power of Data

Data is a key driver behind revenue strategies and revenue managers are going beyond just collecting data, integrating it into decision-making processes and using it to create actionable insights such as automated pricing recommendations.

Michael McNames, Director of Revenue Management at Sandman Hotel Group, said: “Integrating competitive data directly into decision making will revolutionize the speed and efficiency of revenue strategies”.

Empowering Revenue Strategies

These insights are taken from Duetto's hospitality industry trends 2025 report, which analyzes the factors influencing the industry this year. The report includes perspectives from global revenue management professionals and hospitality industry luminaries, including executives 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 have expanded our coverage to include deeper insights from meetings and events businesses and casinos. These sectors face unique challenges and opportunities that are different from hotels, but their perspectives offer new approaches that are valuable for anyone working in revenue management,” said David Woolenberg, CEO of Duetto.

From embracing AI to redefining revenue metrics, the report provides a roadmap for turning today's persistent challenges into tomorrow's successes. With real-world applications and forward-thinking strategies, it offers actionable tools to help hotels, casinos and resort hotels stay ahead of the competition and thrive in 2025.