The hotel industry is continuing to undergo a transformation in 2025, driven by advances in technology, evolving guest expectations, and the growing demand for sustainable practices.
NB: This is an article from Atomize, one of our Expert Partners
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Revenue management, a critical pillar of the hospitality business, is a crucial technology to utilize for success. This article explores the key trends shaping the landscape during 2025 and how hotels are already adapting to the new environment with innovative solutions.
AI and Machine Learning
The adoption of AI in the hotel industry is paving the way for highly personalized travel experiences. In 2025, this trend is set to accelerate as AI continues to reform revenue management and guest satisfaction. One of AI’s greatest strengths lies in its ability to process and analyze massive datasets, a capability that has become even more powerful with the rise of generative AI.
For years, hoteliers have collected vast amounts of guest data, but using this information effectively has been a persistent challenge since hotels often rely on multiple systems. Therefore, integrating and leveraging data for actionable insights has historically been complex. AI now offers solutions to unify these disparate sources, enabling hotels to make sense of the data and apply it meaningfully to enhance guest experiences.
Omnichannel Distribution Strategy
In 2025, the distribution landscape for hotels is evolving as new technologies and regulatory shifts challenge the dominance of traditional online travel agencies (OTAs) like Booking.com and Expedia. Hotels are adopting an omnichannel approach to ensure they effectively reach guests across various platforms, including direct websites, OTAs, mobile apps, and emerging AI-driven search tools.
Legislative crackdowns on monopolistic practices in the travel industry are creating opportunities for alternative booking channels to thrive. Google faces growing competition from AI platforms like ChatGPT and Perplexity, which are shifting the focus from providing exhaustive lists of options to offering the most relevant and tailored recommendations. For hoteliers, this underscores the importance of maintaining websites with accurate, up-to-date information that AI can access and use to represent their properties effectively. Additionally, OTAs, which spend as much as a third of their revenue on Google advertising, are under pressure from multiple directions. Google is increasingly promoting direct hotel bookings, while competitors such as Trip.com and retailers are entering the fray.
Direct bookings remain a priority for many hotels, as they provide greater control over pricing and guest data while reducing dependency on intermediaries. According to Skift Research, hoteliers aim to make direct bookings more than 50% of their distribution mix by 2030. For example, Hilton’s robust loyalty program and mobile app have been instrumental in driving direct bookings, offering exclusive benefits and rewards to encourage customers to book directly. Meanwhile, Marriott’s “Look No Further” policy ensures rate parity, incentivizing guests to use their direct channels with confidence.
