Duetto, a provider of revenue and profit software, and HotStats, a leader in hotel profit and loss benchmarking, have released a joint analysis highlighting a growing disparity between revenue growth and profitability in the hotel sector.
The report shows that whilst Global Revenue Per Available Room (RevPAR) has increased by 19% since 2019, the cost of acquiring bookings has surged by 25%, significantly impacting profit margins.
The analysis reveals that the Americas and Europe experienced average flow-through rates of just 18% and 29% respectively in 2025, compared to previous rates of around 50%. This indicates that focusing solely on revenue growth without considering costs and profits could lead to margin erosion.
Duetto, which acquired HotStats in 2025, has introduced its Revenue & Profit Operating System (RP-OS) to address this issue. The system enables hoteliers to integrate financial benchmarking with revenue strategies, resulting in a 6.8% increase in Gross Operating Profit Per Available Room (GOPPAR) for users in 2025. This marks a 2.1 percentage point improvement over industry averages.
Alex Zoghlin, CEO of Duetto, emphasised the need for a unified strategy: “The disconnect between revenue growth and profit conversion is the defining challenge of this market.” Michael Grove, CEO of HotStats, added, “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.”
Duetto will further explore these insights at its global summit, PERFORM, on 16 April 2026, in Hollywood Beach, Florida.
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