European travel industry optimism boosted by Booking.com data, but Germany lagging in recovery
The European hospitality sector is poised for growth, with chains and larger properties leading the way, according to the latest report from Booking.com's Accommodation Barometer for 2025.
Positive sentiment prevails across the sector, with 63% of accommodation providers expecting positive business development over the next six months. This is slightly below the 65% recorded last year but significantly better than 2022 levels.
Chain hotels and larger properties report stronger sentiment and better business performance indicators than independent and smaller accommodations. This is largely due to their consistent confidence in economic conditions and pricing trends, as well as easier access to financing.
Investment levels are stable and consistent across all accommodation types, with about 62% of operators planning to maintain existing levels of investment. Despite differences in sentiment and business outlook, chains, independents, and alternative accommodations converge on continuing investment, showing anticipation of ongoing demand growth.
However, the report highlights several challenges facing the sector. Skills and recruitment are major issues, with nearly half (47%) of European hoteliers reporting difficulty in hiring and retaining workers with the right skills, particularly for managerial roles. The sector also faces persistent gaps in staff upskilling and technical expertise.
Technology adoption is another hurdle, with around 61% citing high implementation costs and 58% integration complexity as barriers to digital and AI technology uptake. Over half (53%) report insufficient technical expertise in their teams, slowing digital transformation efforts, an issue more pronounced among smaller and independent accommodations.
High-star-rated hotels and large properties generally fare better in recruitment, investment capacity, and digital adoption, reflecting their scale advantages, brand strength, and resource availability compared to smaller or alternative accommodations.
The report also reveals that Greece plans to hire an average of 7.45 employees per hotel, the most among the countries surveyed. Austria, France, and Germany have future expectations of 40%, 50%, and 33% respectively, which are lower than the other mentioned countries.
Overall, the European hospitality sector's performance indicators and sentiment are steady, according to the report. Almost two-thirds (63%) of hoteliers expect continued improvement in the coming season, a 25% increase from 2022's low point. Despite this, the broader European outlook remains anchored in durable optimism heading into the 2025 season.
[1] Booking.com (2025). European Accommodation Barometer Report. [online] Available at: https://www.booking.com/content/barometer.en-gb.html [2] European Hospitality Association (2025). European Accommodation Outlook. [online] Available at: https://eha-online.org/research/european-accommodation-outlook/ [3] Hospitality Net (2025). European Hospitality Sector Performance and Outlook. [online] Available at: https://www.hospitalitynet.org/news/4100212.html [4] Skift (2025). European Chains Outperform Independent Accommodations. [online] Available at: https://skift.com/2025/02/18/european-chains-outperform-independent-accommodations/ [5] Hotel Management (2025). Skills Shortage and Digital Adoption Remain Challenges for European Hospitality Sector. [online] Available at: https://www.hotelmanagement.net/news/Skills-Shortage-and-Digital-Adoption-Remain-Challenges-for-European-Hospitality-Sector.html
- The European hospitality sector anticipates growth, with luxury hotels and chains leading the way, according to Booking.com's Accommodation Barometer for 2025.
- The sector's business outlook is generally positive, with 63% of accommodation providers expecting improved business development over the next six months.
- Larger properties and chains have a stronger sentiment and better business performance indicators due to their access to financing, consistent confidence in economic conditions, and pricing trends.
- Despite differences, nearly all accommodation types, including chains, independents, and alternative accommodations, plan to continue their investment, signifying anticipation of ongoing demand growth.
- The report revealed several challenges, such as recruitment issues, particularly for managerial roles, persistent gaps in staff upskilling and technical expertise, and high implementation costs and integration complexity hindering technology adoption.
