Duetto Calls for a Rethink in Hotel Revenue Management Approaches

Duetto, a revenue and profit software provider, in partnership with HotStats, a leader in hotel profit and loss benchmarking, has published an analysis indicating a widening gap between revenue growth and profitability in the hotel sector. The findings reveal that while Global Revenue Per Available Room (RevPAR) has increased by 19% since 2019, the costs to secure bookings have surged by 25%, adversely affecting profit margins.

The analysis shows that in 2025, average flow-through rates in the Americas and Europe were only 18% and 29% respectively, down from approximately 50% previously. This suggests that focusing solely on revenue growth, without addressing costs, can result in significant margin erosion.

To tackle these challenges, Duetto has rolled out its Revenue & Profit Operating System (RP-OS), which allows hoteliers to align financial benchmarking with revenue strategies. This resulted in an impressive 6.8% increase in Gross Operating Profit Per Available Room (GOPPAR) among users in 2025, outperforming industry averages by 2.1 percentage points.

Alex Zoghlin, CEO of Duetto, remarked, “The disconnect between revenue growth and profit conversion is the defining challenge of this market.” Meanwhile, Michael Grove, CEO of HotStats, shared, “The hotels that are succeeding are those capable of monitoring costs and profit data in real time, adjusting their revenue strategies accordingly.”

Additionally, Duetto will delve deeper into these findings during its upcoming global summit, PERFORM, scheduled for April 16, 2026, in Hollywood Beach, Florida.