Revenue-management platform provider Duetto and HotStats—a global firm specializing in hotel profit-and-loss benchmarking—have released a joint performance analysis revealing a widening disconnect between top-line growth and bottom-line results.
The findings of the study show that hotels focused solely on revenue growth—without equal emphasis on costs and profitability—face growing margin erosion. According to HotStats’ latest aggregated data, global RevPAR has increased 19 percent since 2019, while the cost of acquiring those bookings—measured as Booking Costs per Available Room—has risen 25 percent. Furthermore, in 2025 hotels in The Americas averaged flow-through of just 18 percent, while Europe averaged 29 percent, compared to historical levels of approximately 50 percent.
“The disconnect between revenue growth and profit conversion is the defining challenge of this market,” Duetto CEO Alex Zoghlin said in a statement. “The data clearly shows that looking at RevPAR in isolation is no longer enough to secure a hotel’s financial future.”
“With flow-through rates remaining under pressure, the margin for error is non-existent,” added Michael Grove, CEO of HotStats. “The hotels that are winning are the ones that can monitor costs and profit data in real time and adjust their revenue strategies accordingly.”
HotStats’ aggregated data shows that hotels using both Duetto and HotStats solutions to actively manage revenue, costs and profitability achieved a 6.8 percent increase in Gross Operating Profit per Available Room in 2025—which represented a 2.1 percent outperformance versus comparable companies.
Duetto acquired HotStats in 2025 and subsequently launched its Revenue & Profit Operating System. Following implementation of RP-OS, customers recorded an average four-percentage-point index improvement compared to similar hotels when measuring rolling 12-month performance before and after adoption, according to the company.