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After two years of post-pandemic rebound, hotel operators are now facing a harder truth: revenues are still growing in some regions, but costs are rising faster—and profits are hitting a ceiling. In key European markets, labour cost increases of 4–6% year-on-year are outpacing revenue growth, eroding GOPPAR and putting pressure on operators to rethink what drives performance. Figure 1 Profit Recovery Stalls Across RegionsWhile gross profit per available room (GOPPAR) continues to grow in most regions, the pace of recovery has slowed notably. The Americas lead at $105.42, but Europe and APAC show clear signs of plateauing, with APAC lagging…

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