RevPAR under pressure

Current market analyses confirm the trend: According to eurostat Did wage costs in the service sector in Germany rise by in the first quarter of 2025 +3.8% compared to the previous year. In Austria, macroeconomic wage costs even rose +4% too. At the same time, the hotel market analysis company forecasts STR (Smith Travel Research) for Central European markets, an average RevPar growth of just +1.7% for 2025. According to model calculations, the planned increase in the minimum wage to €15 by 2026 could result in an additional cost stimulus of up to 17% lead.

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In addition, there are rising energy prices, living costs and the withdrawal of temporary tax breaks - such as the reduced value added tax on catering sales. Even with stable occupancy, this causes many houses to skid economically.

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What hoteliers can do now

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Consistent economic readjustment is required. However, the pure savings measures fall short. Future-oriented companies rely on increasing efficiency, clear data structures and new revenue models.

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Staff deployment is a key lever. Digital time recording and intelligent shift planning help to adjust shift models flexibly and according to requirements, for example, according to weather conditions, events or workload. Industry analyses show that operational efficiencies can be improved as a result, even though the actual amount of potential savings depends heavily on the type of hotel and the initial situation.

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Productivity can also be specifically increased in everyday operations - without sacrificing quality. Anyone who makes employees more versatile through cross-training or uses automated processes and self-service technologies gives them room for manoeuvre: digital check-ins, smart guest folders or automatic collection stations in the breakfast service relieve the team.

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At the same time, hoteliers should expand their focus. Sales figures such as RevPAG (revenue per available guest) or TrevPAR (Total Revenue per Available Room) are increasingly coming to the fore. With upselling offers via hotel apps, additional services or targeted cooperation with local partners, revenue per stay can be significantly increased.

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Control over your own thresholds remains crucial. Many houses know their Break-even-RevPAR not exactly - but it is the basis for all strategic planning. Only those who know this value can really manage the wage cost ratio, occupancy and pricing economically.

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In parallel, new usage concepts are developing: Hotels that open up co-working spaces, event rooms or F&B offerings to external guests are opening up additional revenue streams - and thus stabilizing their profitability.

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Digital transparency as a management tool

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In this complex situation, a clear view of your own data helps. The platform profitize combines financial, operational and market data - from PMS, POS and HR to energy, accounting and forecasting - in a central application. This gives hoteliers a reliable basis for their decisions.

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“The current situation requires radical transparency. If you don't know your costs in a granular way, you quickly lose control. With Profitize, we give hoteliers the tools to create clarity and secure profits,” says  Michael Gorfer, Co-CEO of Profitize.

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With automated reports, break-even analyses and real-time forecasts, profitize not only supports controlling, but also facilitates daily management - from shift planning to budget control.

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A new realism in the hotel industry

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Economic pressure is forcing many hotels to rethink: away from gut instinct and towards data-based planning and automated management. Platforms like profitize make just that possible, they create an overview where otherwise there is complexity and help to remain profitable even under challenging conditions.

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