SAN FRANCISCO — January 14, 2026 — Duetto, a hotel industry provider of revenue and profit software, and HotStats, a global leader in hotel P&L benchmarking, have released a joint performance analysis showing a widening gap between top-line growth and bottom-line reality.
HotStats’ latest aggregated data shows Global RevPAR has grown 19% since 2019; however, the cost of acquiring those bookings (Booking Costs PAR) has surged by 25%. This disparity, combined with high cost inflation, in particular in labor cost, has severely impacted flow-through, with data showing The Americas had an average flow-through of just 18%, while Europe averaged 29% in 2025, as compared to flow-through rates in prior years at higher levels of approximately 50%. Current averages reveal that hoteliers that manage revenue growth alone without a cost and profit view risk margin erosion.
Hoteliers face a tech challenge when analyzing and managing costs and profitability. Technology providers are largely lagging when it comes to enabling a strategy spanning revenue and profit. One of the few exceptions to this is Duetto, who acquired HotStats in 2025 and has since announced their Revenue & Profit Operating System (RP-OS).
HotStats aggregated data found customers using Duetto and HotStats products combined to analyze and manage costs and profitability achieved a 6.8% increase in Gross Operating Profit Per Available Room (GOPPAR) in 2025. This performance represents a 2.1 percentage point improvement against averages for comparable companies.
The impact of the RP-OS is measurable quickly. Following implementation, customers saw an average 4 percentage point index improvement versus comparable companies (comparing the rolling 12-month periods pre- and post-implementation).
Revenue and profit teams need a unified strategy. Cost impacts on the bottom-line must be brought into revenue strategies and daily practices to improve the financial performance of hotels. Hotel commercial leaders must carefully select tools that facilitate this unified strategy, and Duetto’s RP-OS has proven itself a strong option.
“The disconnect between revenue growth and profit conversion is the defining challenge of this market," said Alex Zoghlin, CEO of Duetto. "The data clearly shows that looking at RevPAR in isolation is no longer enough to secure a hotel's financial future. By integrating financial benchmarking directly with revenue strategy using our RP-OS, our customers are making smarter decisions based on what actually drives the bottom line.”
"With flow-through rates an ongoing challenge, the margin for error is non-existent” said Michael Grove, CEO of HotStats. “The hotels that are winning are the ones that can monitor their costs and profit data in real-time and adjust their revenue strategies accordingly."
hotstatsDuetto will continue to share its insights at PERFORM, its newly announced global summit on profit and revenue management, scheduled for April 16, 2026, in Hollywood Beach, Florida.
Methodology Note: The performance analysis cited is based on an anonymized, aggregated study of the HotStats global database. No individual property PII, trade secret or other confidential data was shared between users. Comparison cohorts were required to meet a minimum sample size to ensure statistical anonymity.
Duetto is the leading revenue strategy platform for the hospitality industry, serving over 7,200 hotels, casinos, and resorts worldwide.
More than just a traditional RMS, Duetto is building the industry’s first Revenue & Profit Operating System, connecting all aspects of hotel revenue and operations in one unified platform. Powered by automation, AI, and profitability insights, it helps commercial teams make smarter, faster decisions based on total profit — not just room revenue.
Duetto will be hosting its first flagship event, PERFORM — the summit for revenue and profit leaders — in Hollywood Beach, Florida, Apr 16, 2026.
HotStats, now a Duetto company, is a global data benchmarking company for the hospitality industry, offering specialized performance analysis and benchmarking of financial and operational data from a diverse range of hotels globally. This provides hotel owners, operators, and investors with valuable insights into the financial performance of their properties against their competition — an invaluable resource for weighing options and evaluating investment opportunities.