SAN FRANCISCO, California—Duetto and HotStats released a joint performance analysis, which found a widening gap between top-line growth and bottom-line reality.
HotStats’ latest aggregated data showed that global RevPAR has grown 19 percent since 2019; however, the cost of acquiring those bookings (Booking Costs PAR) has surged by 25 percent. This disparity, combined with high cost inflation, in particular in labor cost, has severely impacted flow-through, with data showing the Americas had an average flow-through of just 18 percent, while Europe averaged 29 percent in 2025, as compared to flow-through rates in prior years at higher levels of approximately 50 percent. Current averages showed that hoteliers who manage revenue growth alone without a cost and profit view risk margin erosion.
Hoteliers face a tech challenge when analyzing and managing costs and profitability. Technology providers are largely lagging when it comes to enabling a strategy spanning revenue and profit.
Commercial Strategy
Revenue and profit teams need a unified strategy. Cost impacts on the bottom line must be brought into revenue strategies and daily practices to improve the financial performance of hotels. Hotel commercial leaders must carefully select tools that facilitate this unified strategy, and Duetto’s RP-OS has proven itself a strong option.
“The disconnect between revenue growth and profit conversion is the defining challenge of this market,” said Alex Zoghlin, chief executive officer of Duetto. “The data clearly shows that looking at RevPAR in isolation is no longer enough to secure a hotel’s financial future. By integrating financial benchmarking directly with revenue strategy using our RP-OS, our customers are making smarter decisions based on what actually drives the bottom line.”
“With flow-through rates an ongoing challenge, the margin for error is nonexistent,” said Michael Grove, chief executive officer of HotStats. “The hotels that are winning are the ones that can monitor their costs and profit data in real-time and adjust their revenue strategies accordingly.”
