This statistic shows annual growth in average global hotel rates from 2010 to 2018. Global hotel rates were forecasted to increase by 3.7 percent in 2018.

The average daily rate of the hotel industry in the Americas reached around 123.37 U.S. dollars in 2016.

This statistic shows average global hotel rates from 2009 to 2015. In 2013, the average global hotel rate was 171 U.S. dollars. This figure was forecasted to increase to 174 U.S. dollars in 2014 and again to 179 dollars in 2015.

As a result of the coronavirus (COVID-19) pandemic the hotel industry has taken a hit in 2020. In May 2020, the average daily rate (ADR) of hotels in Europe was ***** U.S. dollars. Daily hotel prices were lowest in the Asia Pacific region during the same month.

Hotel rate changes worldwide

In each region, corporate average daily hotel rates are forecast to increase by 2020. Asia’s rates are predicted to be higher than the global average, increasing by about ***** percent. Latin America should see a smaller rise of about *** percent, due to the more modest growth in demand within this region. However, these rates were forecast prior to the coronavirus (COVID-19) pandemic therefore will be subject to change.

Hotel occupancy rate

Average daily rates in the hotel industry tend to change throughout the year as they are closely linked to hotel occupancy rates. Specific regions are visited more frequently during certain times of year. For instance, hotel rooms in the Americas were rented more frequently during the summer months, compared to the colder winter months in 2019.

Spain Hotel Price Index: 2001=100: Company data was reported at 108.900 2001=100 in Dec 2007. This records a decrease from the previous number of 109.500 2001=100 for Nov 2007. Spain Hotel Price Index: 2001=100: Company data is updated monthly, averaging 107.800 2001=100 from Jan 2000 (Median) to Dec 2007, with 96 observations. The data reached an all-time high of 121.100 2001=100 in Dec 2001 and a record low of 88.930 2001=100 in Jan 2000. Spain Hotel Price Index: 2001=100: Company data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Spain – Table ES.Q026: Hotel Price Index.

Over the past five years, the Global Hotels and Resorts industry has expanded. The current period started with a pandemic-low revenue level. As business and travel activities gradually resumed, industry revenue surpassed the pre-pandemic level in 2023. However, rising inflation following the pandemic and geopolitical tensions depressed the potential revenue growth. Further, stringent fatal aviation accidents and potential tariff war further deteriorate consumer confidence, inducing them to put off travel plans. Overall, industry revenue is expected to grow at an annualized rate of 14.2% to $1.8 trillion over the five years to 2025, including a 2.4% growth in 2025. In the same year, profit is also expected to reach 18.5%. While the prominence of well-known hotel chains looms over the industry, it still experiences low concentration since it has numerous small independent hotels. Due to low concentration, the industry remains highly competitive, and the steady increase in the supply of new hotel rooms has limited the hotels' ability to raise room prices. However, the industry is changing and continues to become more consolidated. This gives larger chains control over industry parts through loyalty programs and discounted pricing structures. Over the next five years, the largest growth will likely be in Asia and the Pacific, which will help emerging economies surpass several developed economies as favored destinations for tourists. However, uncertainty in some markets, specifically those with political and health risks, will hamper consumer sentiment early during the outlook period, placing pressure on hotels. Further, the potential tariff war between the US and other powerhouses such as China and the EU will likely affect travel rates as these countries strengthen their border control. Even so, more hotels and resorts will be built due to travel rates expected to rise overall, which should drive industry revenue growth. Overall, industry revenue is projected to increase at an annualized rate of 2.2% to $2.0 trillion over the five years to 2030.

France Consumer Price Index (CPI): Restaurants and Hotels data was reported at 124.000 2015=100 in Mar 2025. This records an increase from the previous number of 123.870 2015=100 for Feb 2025. France Consumer Price Index (CPI): Restaurants and Hotels data is updated monthly, averaging 85.200 2015=100 from Jan 1990 (Median) to Mar 2025, with 423 observations. The data reached an all-time high of 130.310 2015=100 in Aug 2024 and a record low of 51.740 2015=100 in Jan 1990. France Consumer Price Index (CPI): Restaurants and Hotels data remains active status in CEIC and is reported by National Institute of Statistics and Economic Studies. The data is categorized under Global Database’s France – Table FR.I005: Consumer Price Index: 2015=100.

Japan: Hotel and restaurant price index, world average = 100: The latest value from 2021 is 147.86 index points, an increase from 129.06 index points in 2017. In comparison, the world average is 81.95 index points, based on data from 165 countries. Historically, the average for Japan from 2017 to 2021 is 138.46 index points. The minimum value, 129.06 index points, was reached in 2017 while the maximum of 147.86 index points was recorded in 2021.

In 2019, the average daily rate (ADR) of the hotel industry stood at about ***** U.S. dollars in the Americas. Prices in this region have been steadily increasing over the past decade.

Hotel rates

The ADR of a hotel frequently changes throughout the year. For instance, average daily rates in Europe tend to be significantly higher during the summer months, reaching approximately *** U.S. dollars in June 2019. Comparatively, in the winter period ADRs are typically lower, reaching around *** U.S. dollars in February 2019. This trend was also visible in the Americas over the last five years; however, to a lesser extent. In terms of daily hotel rates, the United States has seen a pattern of growth since 2009. The average price has grown by just over ** U.S. dollars since then.

Revenue per available room

In 2019, European hotels generated the most revenue per available room (RevPAR), namely some ** U.S. dollars per room. Just like ADRs, the RevPAR is changeable depending on the month in which the room was booked. Revenue per available room is higher in peak seasons, therefore, it grows in the most popular seasons for each destination and decreases in low seasons.

Poland: Hotel and restaurant price index, world average = 100: The latest value from 2021 is 98.02 index points, an increase from 92.4 index points in 2017. In comparison, the world average is 81.95 index points, based on data from 165 countries. Historically, the average for Poland from 2017 to 2021 is 95.21 index points. The minimum value, 92.4 index points, was reached in 2017 while the maximum of 98.02 index points was recorded in 2021.

Spain: Hotel and restaurant price index, world average = 100: The latest value from 2021 is 111.1 index points, an increase from 107.29 index points in 2017. In comparison, the world average is 81.95 index points, based on data from 165 countries. Historically, the average for Spain from 2017 to 2021 is 109.2 index points. The minimum value, 107.29 index points, was reached in 2017 while the maximum of 111.1 index points was recorded in 2021.

According to Cognitive Market Research, the global Hotel Revenue Management Systems market size will be USD 16852.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.60% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 6741.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 5055.75 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 3876.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 842.63 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 337.05 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.3% from 2024 to 2031.
The Cloud-based Deployment Type is the fastest growing segment of the Hotel Revenue Management Systems industry

Market Dynamics of Hotel Revenue Management Systems Market

Key Drivers for Hotel Revenue Management Systems Market

Rising Demand for Dynamic Pricing to Boost Market Growth

The rising demand for dynamic pricing is a key driver of the Hotel Revenue Management Systems Market as it enables hotels to optimize room rates based on real-time data, maximizing revenue. Dynamic pricing adjusts prices according to factors like market demand, occupancy levels, competitor pricing, and seasonal fluctuations. This flexibility helps hotels respond quickly to changing conditions, ensuring they remain competitive and profitable. With the increase in online bookings and digital platforms, consumers are more price-sensitive, making it crucial for hotels to offer the right price at the right time. Revenue management systems equipped with dynamic pricing algorithms allow hotels to capture demand during peak periods while avoiding unsold inventory during low demand, driving the need for these systems across the hospitality industry.

For instance, in March 2024, Suba Group of Hotels has opened its third property, Click Hotel, in Pithampur, Madhya Pradesh. This new hotel is tailored for modern business travelers and offers 63 upscale, contemporary rooms and suites.

Restraint Factor for the Hotel Revenue Management Systems Market

High Implementation Costs will Limit Market Growth

High implementation costs are a key restraint in the Hotel Revenue Management Systems Market, especially for small and mid-sized hotels with limited budgets. These systems often require significant upfront investment in software, hardware, and infrastructure upgrades, as well as ongoing costs for maintenance, updates, and support. Additionally, integrating revenue management systems with existing hotel operations, such as property management systems (PMS) and channel managers, can be complex and costly. Smaller hotels may find it difficult to justify these expenses, especially if they operate in regions with lower demand or tighter margins. As a result, the high cost barrier limits widespread adoption of these advanced systems, particularly in budget-conscious or less developed markets, hindering overall market growth.

Impact of Covid-19 on the Hotel Revenue Management Systems Market

The COVID-19 pandemic had a profound impact on the Hotel Revenue Management Systems Market, causing a temporary decline due to reduced travel and occupancy rates. The crisis led to widespread hotel closures and a significant drop in global tourism, which diminished the immediate need for revenue management solutions. However, the pandemic also accelerated the adoption of technology as hotels sought to adapt to new market realities. Revenue management systems became essential for optimizing pricing and managing inventory in a highly uncertain environment. The focus shifted towards leveraging data analytics for forecasting and strategic decision-making to navigate recovery and future uncertainties. As the industry recovers, the pandemic has reinforced the importance of sophisticated revenue management tools for resilience and competitive advantage.

Opportunity for Hotel Rev...

Hotel Price Index: 2001=100: Basque Country data was reported at 108.500 2001=100 in Dec 2008. This records an increase from the previous number of 107.800 2001=100 for Nov 2008. Hotel Price Index: 2001=100: Basque Country data is updated monthly, averaging 108.850 2001=100 from Jan 2001 (Median) to Dec 2008, with 96 observations. The data reached an all-time high of 128.100 2001=100 in Aug 2008 and a record low of 101.500 2001=100 in Feb 2002. Hotel Price Index: 2001=100: Basque Country data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Spain – Table ES.Q026: Hotel Price Index.

Kenya: Hotel and restaurant price index, world average = 100: The latest value from 2021 is 43.17 index points, an increase from 38.81 index points in 2017. In comparison, the world average is 81.95 index points, based on data from 165 countries. Historically, the average for Kenya from 2017 to 2021 is 40.99 index points. The minimum value, 38.81 index points, was reached in 2017 while the maximum of 43.17 index points was recorded in 2021.

The graph depicts the average price of a hotel room in 2010 and 2011* around the world. In Europe, the average cost for a hotel room was 167.76 U.S. dollars.The Hotel Price Index (HPI) is based on bookings made on hotels.com. The prices shown are those actually paid by the customer. The sample set are about 110,000 properties in more than 18,000 global locations.

Average hotel room prices - additional information

In both 2010 and 2011, the Caribbean was the most expensive region in the world to for hotel stays, with an average hotel room price of 207.11 U.S. dollars in 2011. The Caribbean, located to the south east of North America and the Gulf of Mexico, includes many popular vacation destinations such as the Bahamas, Cuba, Barbados and the Dominican Republic. The region is well-known for its natural beauty and luxury resorts. In 2013, Soufriere, St. Lucia, was one of the most expensive destinations for U.S. travelers in terms of hotel costs, second only to Bora Bora in French Polynesia, where the average daily rate for a hotel was 770 U.S. dollars. Despite the cost, Caribbean cruises were the most popular vacations in the U.S. according to travel company Travel Leaders Group.

A close neighbour of the Caribbean, North America saw the lowest average hotel price in 2010 and 2011. While low in comparison to other regions, the average daily rate of hotels in the U.S. has risen year-on-year since the global recession of 2009 and, in 2013, the U.S. hotel industry generated 163 billion U.S. dollars in revenue. The United States also has some expensive destinations of its own: the most expensive U.S. city for hotel rates in 2013 was Honolulu, Hawaii, with an average daily rate of 230 U.S. dollars. New York ranked second at 211 U.S. dollars a night.

As well as being the region with the second highest average hotel price, hotels in Europe also charge the most for room service. Six out of ten of the most expensive cities in the world for hotel room service were located in Europe in 2014. Helsinki in Finland was the most expensive at just under 90 U.S. dollars.

India Consumer Price Index (CPI): Miscellaneous: Hotel Lodging Charges data was reported at 125.300 2012=100 in Oct 2018. This records an increase from the previous number of 123.000 2012=100 for Sep 2018. India Consumer Price Index (CPI): Miscellaneous: Hotel Lodging Charges data is updated monthly, averaging 116.700 2012=100 from Jan 2014 (Median) to Oct 2018, with 58 observations. The data reached an all-time high of 140.700 2012=100 in Aug 2017 and a record low of 108.000 2012=100 in Feb 2014. India Consumer Price Index (CPI): Miscellaneous: Hotel Lodging Charges data remains active status in CEIC and is reported by Central Statistics Office. The data is categorized under India Premium Database’s Inflation – Table IN.IA017: Consumer Price Index: 2012=100: Miscellaneous.

The global hotel occupancy rate reached ** percent in December 2024. The highest rates that year were recorded in July and August, both at ** percent.

In May 2024, the region with the highest hotel occupancy rate worldwide was Europe, at ** percent, showing a *** percent increase over the previous year. Meanwhile, the lower occupancy rates across the board in 2020 and 2021 were due to the impact of the coronavirus (COVID-19) pandemic on the hotel industry.

Spain Hotel Price Index: Same Mth 2008=100: Aragon data was reported at 87.170 Same Mth 2008=100 in Oct 2018. This records an increase from the previous number of 70.560 Same Mth 2008=100 for Sep 2018. Spain Hotel Price Index: Same Mth 2008=100: Aragon data is updated monthly, averaging 80.495 Same Mth 2008=100 from Jan 2001 (Median) to Oct 2018, with 214 observations. The data reached an all-time high of 100.720 Same Mth 2008=100 in Dec 2007 and a record low of 56.810 Same Mth 2008=100 in Jul 2013. Spain Hotel Price Index: Same Mth 2008=100: Aragon data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Spain – Table ES.Q026: Hotel Price Index.

Greece: Hotel and restaurant price index, world average = 100: The latest value from 2021 is 116.72 index points, an increase from 103.71 index points in 2017. In comparison, the world average is 81.95 index points, based on data from 165 countries. Historically, the average for Greece from 2017 to 2021 is 110.22 index points. The minimum value, 103.71 index points, was reached in 2017 while the maximum of 116.72 index points was recorded in 2021.

Dominican Republic: Hotel and restaurant price index, world average = 100: The latest value from 2021 is 79.28 index points, an increase from 69.79 index points in 2017. In comparison, the world average is 81.95 index points, based on data from 165 countries. Historically, the average for Dominican Republic from 2017 to 2021 is 74.54 index points. The minimum value, 69.79 index points, was reached in 2017 while the maximum of 79.28 index points was recorded in 2021.