Traveler booking behavior and insights
This year’s analysis expands to more than 20,000 independent properties across 150 countries, drawing insights from nearly 40 million bookings between 2022 and 2024. The report offers a snapshot of travel patterns independent lodging operators can expect in 2025, along with strategies to optimize performance in a challenging and unpredictable market.
Occupancy: Patterns normalize
With the “revenge” phase of post-pandemic travel now over, growth is expected to remain moderate in 2025, although with significant regional variances. Globally, the strength of demand depends on several unpredictable factors, including:
• Fluctuations in inflation and its impact on travel spending
• The continued recovery of group and business travel
• The revival of Chinese outbound tourism
• The trajectory of geopolitical conflicts in Ukraine and theMiddle East
• The strength of the U.S. dollar
• The impact of the second Trump administration on globaltravel policies
Unlike in previous years, hoteliers cannot rely on organic market growth to drive occupancy in 2025. Instead, they must focus on capturing market share through targeted strategies like leveling up dynamic pricing, developing experience-driven offerings, and attracting new traveler segments.
Occupancy pace: Demand spikes in the final days before arrival
Occupancy pace – the rate at which rooms are booked on future dates – offers insights into booking trends and demand patterns. Data from 2022 to 2024 shows that short term bookings were weaker in 2022(due to Omicron-related hesitancy), but that otherwise, pace remained consistent across the three years.
The pattern shows a steady increase in bookings 190 to 60 days prior to arrival, followed by a sharp acceleration from 30 to 10 days out, and a final surge in the last 10 days. In 2024, for example, hotel occupancy grew by 16 percentage points in the 10 days immediately prior to arrival.
By monitoring occupancy pace, hotels can strategically increase rates during periods of high demand and proactively adjust marketing efforts to boost bookings during slow pickup periods.
Average daily rate: Pricing hits a ceiling
Looking ahead, headline inflation is forecasted to drop to 3.3%in 2025, yet room rates are projected to increase by only 2.6% globally in 2025, meaning hotels will again see a decline in real revenue. To offset the impacts of inflation, lodging operators need to devise strategies to grow ADR above market levels. This includes refining segmentation and pricing strategies, investing in direct bookings, and enhancing perceived value through premium experiences, value-added packages, and reputation management.
Booking source: OTAs continue to dominate
Online travel agencies (OTAs) captured 61% of bookings for independent properties in 2024, a 1% increase from 2023. In contrast, branded hotels are far less reliant on OTAs, with an OTA share of just 35%, according to Phocuswright. This highlights how chain hotels are more effective at driving direct bookings than independent properties.
While OTAs remain a vital channel for visibility and bookings, an over reliance on them can erode profitability
due to high commission fees. To attract the right audiences while maximizing direct bookings, independent hotels should focus on providing a seamless direct booking experience while maintaining a balanced distribution strategy, expanding their presence on mainstream and niche OTAs.
Booking source by region: All regions but LATAM increase OTA dependency
OTA reliance varies significantly by region,with Europe having the highest share. In 2024, 77% of hotel bookings in Europe came from OTAs, almost 10%above other regions. Asia Pacific had the second-highest dependence, reaching 68.6% in 2024, a 3% increase from 2023.
Booking window: Patterns vary broadly by country
Tracking how far in advance guests book helps hotels improve forecasting and optimize pricing strategies. In 2024, average booking windows varied dramatically by country. The shortest windows were in the Philippines (17.6 days) and Mexico(18.6 days), whereas the longest were in Canada (38.4 days) and Indonesia (45.3 days).
Length of stay: Patterns remain stable
Average length of stay (ALOS) is another key metric for both commercial strategy and operational planning. Longer stays generate more revenue, reduce room turnover costs, and stabilize occupancy.
Length of stay patterns were relatively consistent from 2022 to 2024. In 2024, 44% of hotel bookings were for one to two nights, a slight increase over 2023. The second most common stay length was three to four nights, making up 28% of bookings. Stays of five to six nights and seven to 13 nights each represented 10% of bookings, while 8% of guests stayed 14 nights or longer.
To encourage longer stays, hotels can target business travelers, 40% of whom take trips lasting three to five days, while only 5% travel for a single day, 6 benchmark pricing and offerings against short term rentals, which typically attract longer stays, and appeal to leisure travelers.
Arrival & departure: Weekends remain the main hub of activity
In 2024, the most popular check-in days were Fridays (18.5%) and Saturdays (17.2%), while the highest volume of
check-outs occurred on Sundays (23.0%). These trends are consistent with previous years and reflect the dominance of leisure travel in independent hotel bookings.
By striving for a better balance of arrivals and departures throughout the week, hotels can smooth demand fluctuations and increase occupancy. Strategies include attracting midweek travelers with special rates or incentives, implementing stay restrictions, and diversifying channels to strengthen the corporate segment, wholesale, and travel consortia.
Cancellation rate: OTA guests cancel more than any other segment
High cancellation volumes –especially last-minute ones –can leave hotels scrambling to fill rooms, often forcing rate cuts that erode profitability. Managing cancellations effectively is crucial to revenue stability. To reduce cancellations, hotels should prioritize direct bookings, which have a significantly lower cancellation rate (12%), apply stricter cancellation policies, such as shorter grace periods or higher rates for flexible cancellations, and send automated pre-arrival messages to remind guests of their reservations and reduce last-minute cancellations.
Cancellation window: Travelers are canceling further ahead of time
Average cancellation windows –the number of days between when a guest cancels and their original check-in date – vary significantly by region, reflecting seasonal trends and booking behaviors. In 2024, all regions except Latin America experienced longer cancellation windows compared to 2023. This shift may be a lingering effect of the pandemic years when more bookings were made last minute and cancellation policies were more flexible.
Copyright: https://go.pardot.com/
