Hotel sector stabilises post pandemic

SiteMinder’s Hotel Booking Trends report, based on more than 130 million reservations across 20 key destinations, shows the global hotel market has largely stabilised after the post-pandemic rebound, but continues to evolve.

Globally, peak periods are less dominant, with 65% of markets analyzed seeing their busiest month account for a smaller share of annual arrivals in 2025 than in 2024.

Guests are traveling more during spring and autumn, as well as during traditional peak periods. Average daily rate (ADR) increased in around 70% of markets, with the global ADR reaching US$194, reflecting travellers’ willingness to pay for better experiences.

Outbound travel from China and India surpassed pre-pandemic levels for the first time, helping channels like Agoda and Trip.com climb or debut in many countries’ top 12 revenue-generating booking sources. Direct booking channels continue to generate the highest-value bookings, with average revenue per direct booking significantly above that of OTAs and other intermediaries.

In the UK, the hotel market has settled into a new normal. The UK’s ADR rose from £189.00 in 2024 to £191.55 in 2025, while the cancellation rate edged down from 18.27% to 18.24%, remaining below the global benchmark of 19.15%. This indicates revenue per booked room is increasing and more bookings are being retained.

Short stays dominate the UK market, accounting for 80.5% of hotel stays—one of the highest single-night shares among the 20 markets analyzed. Domestic guests account for roughly 69% of check-ins, confirming a backbone of local, one-night guests, often traveling for work, events, or short leisure breaks.

Seasonality in the UK is starting to soften, but familiar patterns persist. August remains the busiest month for check-ins, while October and December are gaining importance. January is the cheapest month to stay, at around £150 on average, whereas July is the most expensive at about £215. Fridays are consistently the priciest night to check in, with Sundays the least expensive.

The UK’s top 12 revenue-generating booking sources now reflect a broader mix of OTAs, direct, and B2B channels. Booking.com and Expedia remain the top two revenue drivers, with direct bookings in third place. Agoda has consolidated its fourth-place position, benefiting from stronger inbound travel from Asia. London-based G2 Travel appears in the rankings for the first time, while Indian B2B provider TBOHolidays maintains its foothold. This points to a UK distribution landscape where specialist B2B and wholesale partners increasingly complement the traditional OTA and direct split.

The report identifies three practical actions for UK hoteliers: design product and revenue strategies around short stays by packaging high-value experiences; implement dynamic pricing by day and season, adjusting rates in real time, especially around Fridays and Sundays; and manage booking channels as a portfolio, maintaining a strong direct channel while using OTAs and B2B partners to reach specific segments, including long-haul Asian travelers and groups.