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Trends in Europe March 2025: a two-speed hospitality business by MKG Consulting

Trends in Europe March 2025: a two-speed hospitality business by MKG Consulting

Hospitality Net08-05-2025
March 2025 revealed a mixed picture for the European hotel industry. Several segments saw their performances fluctuate, in particular the budget and economy segments, with domestic customers less able to multiply their stays due to the economic context. While Eastern Europe is once again doing well, with strong growth, other regions, such as North-Western Europe, are struggling to return to a positive trajectory.
European hotel performances are very uneven from one range to another. After returning to a degree of stability last month, the budget and economy segments plunged back into the red, with RevPAR declines of -10.2% and -2.4% respectively. The midscale segment is also experiencing a slight decline in performance (-0.5%), with the upscale segment being the only one not to be caught up in this downward trend (+0.9%) thanks to the international clientele.
European hotel trends: March 2025 - RevPAR par Hospitality ON — Photo by HSMAI Europe
Eastern Europe vs Southern Europe: the battle goes on
Two of the strongest RevPAR increases were in Eastern Europe, confirming the dynamism of this region. As in February, Latvia and Hungary are in the top three, but this time alongside Greece, which has radically reversed the previous month's trend.
North-West Europe still lagging behind
With the exception of the Czech Republic, whose RevPAR fell by -13.4%, the worst performers are all to be found in the West. Unsurprisingly, the Czech Republic tops the podium, followed by France (-4.3%) and the Netherlands (-3.7%).
In March 2025, European hotel performance showed notable disparities, with solid results in regions such as Eastern Europe and the Mediterranean, where destinations such as Latvia, Hungary and Greece posted strong RevPAR growth. Conversely, some destinations in Western Europe, notably France and the Netherlands, saw their performance held back by a variety of external factors.
Article by MKG
About HSMAI Europe
HSMAI – Hospitality Sales and Marketing Association International – is a global organisation founded in the US in 1927. HSMAI Region Europe is the European arm of the organisation. HSMAI Europe aims to be a key influencer, pioneer and the go-to industry resource for professional development, commercial strategies and sustainability in the hospitality, travel and tourism industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry while operating as a leading voice for both hospitality and sales, marketing, and revenue management disciplines.
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