Let’s be realistic: 2025 is not yet the year of a full-scale Gold Rush in France or even Europe. While some players seem to have struck gold already, for the majority of the hotel industry, the year is not off to the most promising start. The political climate remains gloomy, even turbulent, with little clarity about short- or medium-term improvements. The social and economic context reflects this unease, blending the uncertainties of the more optimistic with the anxieties of the more vulnerable.
This situation is not experienced equally across households, and the return of the “social divide” is more striking than ever. The gap is widening between upper-income groups, with an almost insatiable desire for indulgence, and the majority of the population, who must balance essential spending with precautionary saving.
The polarization of market segments, which began post-pandemic, continues to grow. On one side are “revenge travelers,” and on the other, proponents of low-carbon local leisure. This divide strengthens as the months go by, with luxury thriving like never before. While the appeal of status symbols may have plateaued, the appetite for high-end leisure experiences shows no signs of waning. In response, investors are now focusing on projects that cater to a limited but surging demand. The affluent clientele is expanding, creating significant opportunities, at least for the foreseeable future.
However, not all of hospitality can revolve around luxury offerings. Around 80–90% of the market serves the “middle class” and corporate clients, whose spending behaviors are pivotal in determining economic growth or recession.
For the hospitality industry, there’s good news in the apparent unwillingness to forgo vacations or short getaways. But signs of the “crisis” are already evident in shifting preferences: camping, tourist residences, and seasonal rentals are taking center stage due to their more attractive price-to-pleasure ratios compared to traditional hotels.
The budget hotel segment faces significant challenges, with fewer new developments and declining business travel. While long-term fundamentals remain solid, the coming months will test this sector.
With no major international events in 2025, the industry faces a moment of truth regarding the state of the market and how to approach it. For many hotels, it’s time to renew and reinforce their value propositions.
Now more than ever, digging into creativity and finding the right niche is crucial. Offering a truly unique stay experience has become a powerful tool for differentiation, especially compared to other accommodation options that may lack the same strategy, capabilities, or resources.
Lifestyle models are leading the way without drastically inflating average prices, as demonstrated by brands like Okko, Jost, Kopster, FirstName, UrbanHive, MOB, and even Eklo, The People, or B&B Home. There’s no inevitability in losing customers to peer-to-peer offerings—provided the industry delivers more than just a good bed and a prime location.
I firmly believe we are on the brink of a new cycle in redefining offerings, which may also lead to a restructuring of the players involved. The bold and ambitious will grow, while the fragile or hesitant may not survive this phase of transformation.
Appropriately, the theme of the next Operator Forum in June 2025 will focus on this essential transformation within hotel companies, both operationally and in their propositions and positioning. Stay tuned for the announcement of what promises to be a game-changing program.