The summer of 2025 marked a significant period for the European hotel industry, as travelers exhibited new booking behaviors and spending patterns. An analysis by RoomRaccoon of over 600,000 reservations from 2,000 independent hotels across Europe revealed that guests were planning their holidays earlier, extending their stays, and spending more on additional services. This shift presents both opportunities and challenges for hoteliers aiming to optimize their strategies.
Booking Trends
The average booking lead time increased to 53 days, up from 42 days in 2024. This change suggests that travelers are planning their trips nearly two months in advance, giving hoteliers more time to adjust their pricing strategies. Countries such as the UK, the Netherlands, and Spain experienced the most significant increases in lead times, with guests booking 27, 24, and 15 days earlier, respectively.
Extended stays also became more common, with the percentage of one-night bookings slightly decreasing, while longer stays, particularly those of three nights or more, became increasingly popular. In Southern Europe, especially in Spain, the trend towards longer holidays was evident, with 5+ night stays increasing from 9% to 11%.
Hotel Performance
Occupancy rates rose by 7 percentage points to 66%, reflecting strong demand. However, the average daily rate (ADR) decreased from a record €140 in 2024 to €125 in 2025, resulting in a stable revenue per available room (RevPAR) of €84. Despite the dip in ADR, certain markets, such as Portugal, managed to increase rates strategically during peak periods, achieving the highest RevPAR in Europe at €100.
Weekends continued to outperform weekdays, although the gap is narrowing. Hotels achieved higher ADRs and occupancy rates on weekends, with a notable RevPAR boost compared to midweek stays.
Ancillary Revenue
Ancillary revenue saw a 5% increase year-on-year, with hotels earning an average of €35K in upsells during the summer season. Late check-out emerged as the leading revenue driver, generating over €3.4 million across markets. Early check-in also contributed significantly, adding € 800,000.
Food and beverage sales remained strong, with breakfast leading in the Netherlands, and Prosecco and Champagne sales exceeding €3 million in the UK, Germany, and the Netherlands. Family-oriented add-ons, such as baby and extra beds, generated over €3 million, while pet-friendly services showed potential, particularly in Germany.
Romantic and wellness experiences thrived in leisure markets like Portugal and Spain, with couples’ packages driving substantial revenue. Transfers played a significant role in Southern Europe, although they were less utilized in northern regions.
Key Takeaways
The summer of 2025 highlighted significant changes in European travelers’ booking and spending behaviors. As guests continue to seek value and unique experiences, hoteliers must adapt their strategies to capture demand and drive profitability. By focusing on early bookings, extended stays, and strategic upselling, hotels can capitalize on these trends.
