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In a development that won’t surprise anyone who’s ever tried to prise a traveller away from an online travel agency, OTAs remain firmly in command of global demand.

But the hierarchy within the OTA kingdom has shifted.

According to the report, Expedia surged ahead, notching a near-12% jump in room-night volume compared with the same period in 2024. Several other OTAs, Trip.com, Hotelbeds and Despegar, put on more than 35% growth each, an outcome that would warm any distribution executive’s heart.

These gains, however, came at the expense of familiar giants, including Booking.com, Agoda and Vrbo, each of which lost share as travellers experimented more broadly across platforms.

Cloudbeds’ Chief Growth Officer, Rafael Blanes, said the shifts reflect a public whose booking habits are becoming both more pragmatic and more personal.

“Understanding where and how demand is shifting is critical for every hotel leader today,” he said. “At Cloudbeds, we believe data is human it reflects real traveller intent and behaviour. This collaboration with Duetto transforms that data into contextual intelligence, helping hoteliers anticipate change, make smarter decisions, and unlock more profitable growth.”

In other words, the customer is still always right but increasingly unpredictable.

Pricing power weakens as travellers become more cost-focused

For all the excitement around growing OTA volumes, the report strikes a softer note on rate performance.

While Booking.com and Expedia managed modest rises in global Average Daily Rate (ADR), other major distribution partners weren’t as fortunate. Vrbo ADR dropped 10%, Hotelbeds fell 5%, and Airbnb slipped 2%.

And once inflation is factored in, the picture dims further. In many cases, the report notes, “real ADR” actually declined, leaving operators with the unenviable task of doing more with less or simply tightening belts that were already wedged several notches in.

Shorter stays take hold as the age of microcations rises

With cost-of-living pressures a global constant, travellers appear increasingly determined to stretch their budgets by trimming the length of their trips rather than their frequency.

The report data reveals a consistent month-on-month decline in the Average Length of Stay (ALOS) from January to July 2025. In practical terms, this means guests are spending less time in each destination but returning more often, the emerging rhythm of the “microcation” era.

For hoteliers, this shift brings both a blessing and a headache. Shorter stays can boost turnover and ancillary revenue, but also increase operational workload. As ever, the front desk must smile bravely through it all.

Hotel profitability: encouraging signs despite escalating costs

It’s not all gloomy. The report shows global profitability metrics edging in the right direction, a testament to resilient operators and a gradually recovering travel ecosystem.

TRevPAR climbs across all regions.

Total Revenue per Available Room (TRevPAR) rose across the board:

Latin America: +4.6%
North America: +3.5%
Europe: +2.5%

Food and beverage (naturally) remains the powerhouse of ancillary revenue, continuing its reign as the backbone of incremental hotel earnings worldwide.

GOPPAR moves upward – just.

Gross Operating Profit per Available Room (GOPPAR) also posted gains:

North America: +2.9%
Latin America: +1.3%
Europe: +1.2%

Incremental, yes, but upward is, and in a year of volatile demand, hoteliers will take every centimetre.

Labour: still the elephant in the (hotel) room

The most significant challenge, unsurprisingly, remains labour costs.

North America saw labour expenses rise 4.6%, now representing 47% of total operating costs. Europe fared no better, with a 3.9% increase, pushing labour to a formidable 60% of operating costs.

At this level, labour isn’t just the elephant in the room; it’s eating the minibar as well.

A sharper lens for a sharper era

Jason Hofmann, Chief Customer Officer at Duetto, said the partnership between the two companies is already yielding more profound insights into the mechanics of real-world traveller behaviour.

“By combining Duetto’s data with Cloudbeds’ channel insights, we’re helping hoteliers understand how and why traveller behaviour is changing, and how this impacts their bottom line,” he said.

This inaugural Hotel Market Pulse report forms part of a broader strategy by both firms: equipping hoteliers with tools to interpret demand shifts, optimise profitability, and build operational resilience in a climate where nothing, least of all guest behaviour, stays still for long.

For those wanting to explore the full findings, Duetto has published the detailed report here:
https://www.duettocloud.com/library/2025-traveler-trends-and-hotel-profitability-insights-duetto

If the industry needed proof that success in 2025 depends on nimbleness, sharp data and a healthy respect for the whims of global travellers, this report provides it in black and white. Hotels may not be able to control where guests go, but with the right intelligence, they can at least understand why and be ready when they arrive.