Here are five pricing trends to watch – along with strategies to help you stay on top of the opportunities and ahead of your competitors.
TREND #1
Sticker Shock: Get Ready for Price-Sensitive Travelers
Inflation-weary travelers are watching their budgets more closely and demanding better value, especially those staying at economy and midscale properties.
But inflation hasn’t just impacted travelers – it’s hit hotels too. In 2025, further rate increases may be necessary to cover rising operating costs.
What to do:
- Monitor your room pickup closely to ensure your prices aren’t too high (which could deter bookings) or too low (leaving money on the table).
- Keep an eye on competitor rates, but avoid engaging in pricing wars that erode profit margins and harm long-term pricing positioning.
- Remember that raising rates is often more profitable than increasing occupancy, as a larger percentage of revenue from rate growth flows to the bottom line.
TREND #2
Softer Demand: Boost Occupancy With Longer Stays
After years of strong room demand, growth is expected to soften in some regions this year. One way to offset this is to increase the average length of stay. Longer stays not only bring in more revenue but also reduce acquisition costs and room turnover.
Many hotels accept the first bookings that come along, even for just one night. On busy dates, this can prevent you from accommodating guests looking for multi-night stays.
What to do:
- Offer discounts on longer stays, such as a minimum of three nights, with deeper discounts for seven nights or more.
- Implement minimum length-of-stay (LOS) restrictions on high-demand dates to prioritize longer bookings and prop up occupancy on shoulder nights.
- Use RoomPriceGenie’s new Restrictions concernant le séjour minimum feature to optimize room inventory and boost revenue while reducing operating costs.
TREND #3
Crackdown on OTAs: Reclaim Your Pricing Freedom
For years, OTAs like Booking.com and Expedia have enforced rate parity agreements, preventing hotels from offering lower prices on their websites – the most effective way to attract direct bookings. But this is starting to change.
In recent years, countries like the UK, Australia, Japan, and South Korea have implemented laws to limit these restrictions. Last year, the European Union joined the fold, requiring Booking Holdings to remove rate parity clauses across Europe.
What to do:
- Familiarize yourself with local rate parity regulations and clarify the terms of your OTA agreements.
- Build direct bookings by offering a lowest-rate guarantee (or exclusive perks like free breakfast or parking) to make your website the most attractive option.
- Offer exclusive rates to email subscribers. If rate parity restrictions are still in force in your area, this can help you bypass them while honoring OTA agreements.
TREND #4
Demand Surges: Raise Your Rates While You Sleep
Taylor Swift’s record-breaking Eras Tour may be over, but other big musical acts are hitting the global circuit in 2025, including Coldplay, Oasis, Ed Sheeran, and Dua Lipa.
Concerts, conferences, and sports events can create sudden spikes in demand, often catching hotels unprepared. By the time you notice the surge, your rooms may already be booked at lower rates. Fortunately, automated tools can help you respond faster.
What to do:
- Stay ahead of demand with RoomPriceGenie’s new Protection contre les surtensions feature, which alerts you to sudden booking spikes so you can adjust rates quickly.
- Enable autopilot pricing to automatically increase rates during demand surges.
- Include value-adds like free breakfast or special amenities to maintain guest satisfaction when rates are unusually high.
How powerful is surge pricing? During Taylor Swift’s concert dates in Madrid last year, three RoomPriceGenie customers increased their revenue by an average of 108% using Surge Protection.
TREND #5
Uncertainty in Demand: Eliminate Guesswork with Automation
Room demand is constantly fluctuating, and with economic uncertainty in 2025 and evolving traveler behavior, pricing will only become more complex.
Dynamic pricing – adjusting rates frequently based on demand – has long been a core strategy for large, branded hotels. However, smaller operators without a dedicated revenue manager often lack the time and resources to keep up, leaving them at a disadvantage.
Fortunately, automation is helping to level the playing field. Independent hotels and small hotel groups now have access to revenue management software designed for hotels with limited time for revenue management, making it easier to stay competitive.
What to do:
- Embrace dynamic pricing to take advantage of high-demand periods and fill gaps during low-demand dates.
- Save time and eliminate guesswork by adopting système Revenue Management like RoomPriceGenie, ensuring your rates are always aligned with demand.
- Book a meeting today to start your free 14-day trial.
Keeping Up with the Trends
Hotel pricing is both an art and a science, and 2025 will bring fresh opportunities and challenges for hoteliers. Stay ahead by subscribing to our newsletter to receive expert tips, insights, and strategies directly in your inbox.
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