Behind the reassuring headlines of strong bookings and stable occupancy rates, a deeper story is unfolding. Shifting traveler behavior, rising domestic demand and a growing need for adaptability in the face of political and economic uncertainty.
Drawing from global market observations and extensive Mews data, this article dives into the early warning signs and emerging trends shaping hospitality today. Whether you’re a hotelier in Europe or the US, understanding these shifts – and acting on them – could be the key to thriving in a rapidly changing market.
Global booking trends are positive
First, some good news: when analyzing hotels that have been live with Mews for multiple years (excluding growth from newly added properties), we’re seeing an overall increase in bookings. Cancellations remain stable year-over-year, indicating healthy traveler confidence in many regions.
This confirms the reality that, globally, travel demand remains strong. Hotels continue to capture business at a steady, if slightly shifting, pace.
Is inbound travel to the US wavering?
While global demand holds steady, inbound travel to the US shows signs of weakening. Mews data reveals declines in bookings from Europeans, Canadians, and Mexicans traveling to the United States, along with slightly higher cancellation rates.
This trend aligns with broader geopolitical events. For instance, recent tariff announcements caused a short-term spike in cancellations, although bookings quickly rebounded once the tariffs were lifted. The key takeaway: stability is critical for maintaining traveler confidence. Rapid policy shifts, even if temporary, introduce nervousness that can ripple through the market.
Several underlying factors contribute to this uncertainty, including:
Stricter immigration policies impacting the US workforce (especially in hospitality)
Discussions around country-specific travel restrictions
Increased tariffs affecting costs across connected sectors, including construction and hospitality supply chains
None of these alone is decisive, but collectively they create an environment of instability that could dampen international travel in the coming months.
European travel strengthens
While Europeans are pulling back slightly from US travel, they’re increasingly booking within Europe. Domestic and intra-European travel is buoyant, suggesting a rebalancing of tourism flows.
For US hotels heavily reliant on international travelers, this shift underscores the need to diversify target markets and possibly reposition toward domestic guests. For European hotels, the opportunity lies in capturing this localized demand by ensuring websites, booking engines, and marketing are adapted to a broader range of European audiences (including translation and localized content).
Changing guest behaviors: what hoteliers need to adapt to
These macro shifts are also influencing stay patterns:
Shorter stays are becoming more common with domestic travelers, versus longer, international trips.
Different amenities matter now: parking spaces, family-friendly options, and pet accommodations are increasingly important.
Booking behavior is evolving, with local guests using different channels, payment methods, and expecting faster responses.
Hoteliers who adjust their digital strategy accordingly – targeting new audiences with the right offers, in the right languages, and with the right services – will capture more market share.
Lessons learned from Covid also apply here: small operational shifts (like offering parking or flexible check-in options) can make a big difference in appealing to a new travel demographic.
Future booking indicators: strong but vigilant
Looking ahead, the current “on the books” reservations data looks strong. Future occupancy, ADR (Average Daily Rate), and RevPAR (Revenue per Available Room) figures are holding steady or even outperforming 2024 levels in some markets.
Specifically:
Benelux is tracking similarly to last year
DACH (Germany, Austria, Switzerland) is performing better year-over-year
France is looking positive, especially post-Olympics correction
Scandinavia saw early weakness but is now trending ahead of last year
The UK remains steady compared to 2024
However, despite this healthy forward-looking picture, there’s a word of caution: if macroeconomic instability affects traveler confidence, booking patterns could shift rapidly. Without revenue management tools, hotels may struggle to adapt quickly.
Revenue management is more critical than ever
Most hotels today still don’t use an integrated revenue management system. On average, around one in four hotels do, although this varies greatly depending on segment. Hotel chains have much higher adoption – up to 90% – whereas independent hotels are much less likely to use a specialist revenue management solution.
In a stable market, this might be manageable. But in times of shifting demand, automatic and dynamic rate adjustment is a necessity. If you rely on manual updating, it means:
Holding rates too high and failing to fill rooms
Missing out on revenue by reacting too late
Losing bookings to competitors who move faster
Modern, automated revenue management systems (like Atomize, an AI-powered tool proven to boost RevPAR by up to 35%) are designed to reflect real-time demand patterns, enabling you to maximize both occupancy and rate intelligently.
Mews Marketplace also offers a wide range of integrated revenue management solutions that let hotels optimize rates in real time, boosting both RevPAR and total revenue.
Diversifying revenue beyond rooms
Given likely pressure on room rates, hotels need to broaden their revenue strategies. If room revenue softens, ancillary revenue growth can help balance the books.
There are a number of ways to do this, but the first places to look should be:
Drive F&B revenue: upsell in-house dining and prevent leakage to nearby restaurants.
Sell experiences: offer spa services, tours or activities directly through your booking engine.
Maximize upselling: leverage in-stay upsells via messaging or chatbot integrations.
Create parking and ancillary service packages for domestic travelers arriving by car.
What hoteliers should do now
The situation is fluid and will likely remain so for the next few years. However, that’s no reason to panic – travelers will always be in search of outstanding hospitality experiences. Here’s how hoteliers can future proof their business:
Invest in revenue management technology now, not later.
Diversify your revenue streams beyond rooms.
Focus marketing efforts on local and regional travelers.
Adapt your services and amenities to appeal to domestic guests.
Monitor shifts regularly and be ready to pivot strategies.
The good news? We’re not facing anything close to the disruption seen during Covid. But we are entering a period where agility and smart planning will separate the winners.
For a more detailed analysis of market conditions, and macro trends, check out the full conversation between Matt Welle, Mews CEO, and Wouter Geerts, Director of Research and Intelligence at Mews.
Watch the episode
About Mews
Mews is the leading platform for the new era of hospitality. Powering over 12,500 customers across more than 85 countries, Mews Hospitality Cloud is designed to streamline operations for modern hoteliers, transform the guest experience and create more profitable businesses. Customers include BWH Hotels, Strawberry, The Social Hub and Airelles Collection. Mews was named Best PMS (2024, 2025) and listed among the Best Places to Work in Hotel Tech (2021, 2022, 2024, 2025) by Hotel Tech Report. Mews has raised $410 million from investors including Growth Equity at Goldman Sachs Alternatives, Kinnevik and Tiger Global to transform hospitality.
www.mews.com
