enduring confidence in european accommodations, but skill gaps and industry divisions raise concerns, reveals 2025 european accommodation barometer

Recent insights from the 2025 European Accommodation Barometer have shed light on the current performance and outlook of the European accommodation sector. In a landscape where 63% of accommodation providers express optimism about positive business developments over the next six months, the report also highlights underlying challenges that could impede growth. The survey’s findings, based on interviews with 1,160 executives from travel accommodations across the continent, reveal a strong sense of confidence tempered by skill gaps and divisions in the industry.

Positive Business Outlook Amidst Challenges

The optimism reported in the barometer, with 63% of respondents anticipating a favorable business trajectory, indicates a robust recovery from the setbacks caused by the global pandemic. This renewed confidence is particularly notable given the economic uncertainties that have gripped various sectors. A significant number of establishments, 62%, plan to sustain their current levels of investment, suggesting a commitment to enhancing their operations and guest experiences.

These investments are expected to manifest in several ways, including:

• Upgrading facilities to meet evolving guest expectations
• Implementing eco-friendly practices to attract environmentally conscious travelers
• Enhancing digital channels for better customer engagement and bookings

While the positive forecast is encouraging, the industry is not without its pressing concerns. 47% of accommodation providers cite a lack of necessary skills and experience as a core barrier to recruiting new staff. This situation mirrors broader trends in the labor market and highlights ongoing challenges in attracting qualified personnel. Furthermore, a notable 60% of industry players encounter high implementation costs (61%) and complexities in integrating new technologies (58%) as their main hurdles toward digital transformation. The combination of these factors raises questions about the sector’s preparedness to fully capitalize on emerging opportunities:

Challenges Faced	Percentage of Respondents
Lack of necessary skills or experience	47%
High implementation costs	61%
Integration complexity	58%

The acute awareness of these challenges indicates that while confidence is high, a concerted effort is necessary to bridge the skill gaps that threaten to hold back many accommodations. While larger chains like Accor, Marriott, and Hilton might navigate these issues with more resources, smaller establishments can be particularly vulnerable to such barriers as they often lack the human and fiscal capital to cope effectively.
Read more about the confidence held across Europe’s accommodations.

Emerging Technological Adaptations and Their Impact

The rapid pace of technological advancements has undoubtedly transformed the hospitality landscape in recent years. Central to these transformations are the shifts towards digitalization and the adoption of AI-driven solutions. While 53% of accommodation providers reported lacking technical expertise within their teams, the adoption of digital technology remains essential to staying competitive.

Adopting technology not only streamlines operations but can significantly enhance the customer experience. Traditional booking methods are increasingly being supplanted by digital booking platforms that ensure greater accessibility and convenience. However, the aforementioned gaps in skills and understanding can thwart these necessary advancements.

Interview insights revealed that successful tech adoption can lead to:

1. Increased operational efficiency and reduced costs.
2. Enhanced customer engagement through personalized experiences.
3. Data-driven decision-making for marketing and service improvement.

Leading hotel chains—Ibis, Radisson, and NH Hotels—have been proactive in implementing and mastering these advancements, further solidifying their positions in the competitive landscape. Adapting welcomed changes can stimulate growth, but the initial transition costs and staff retraining can often deter smaller accommodations from embracing technology. Hence, understanding the barriers and perspectives on technology by various stakeholders becomes critical.

Impact of Technology Adoption	Expected Benefits
Operational Efficiency	Streamlined operations reduce costs and enhance service delivery.
Customer Satisfaction	Personalized experiences build loyalty and drive repeat business.
Data Utilization	Informed marketing strategies lead to higher conversion rates.

The current landscape demonstrates that while technology can foster innovation, genuine support and resources must be extended to smaller establishments to enable them to thrive. This delicate balance will play a pivotal role in reshaping the future of the industry and ensuring that all players can joint forces in enhancing customer experiences.

Understanding the Workforce and Skill Gaps in Hospitality

The accommodation industry’s workforce challenges are multifaceted, reflecting broader trends across various sectors. While the optimism expressed by owners is palpable, the reality is that nearly half of accommodations are struggling to recruit talent due to skill gaps. This shortfall often leads to heightened workloads for existing staff, ultimately affecting service quality and guest satisfaction.

This environment underscores the necessity for targeted training programs and effective recruitment strategies. Key factors contributing to these challenges include:

• Increased expectations from consumers regarding service quality.
• Shifts in employment dynamics due to remote work and changing job perceptions.
• A mismatch between available skills and the evolving demands of the industry.

Companies like InterContinental, Best Western, and Meliá Hotels have invested in their workforce through comprehensive training programs. These initiatives focus on upskilling existing staff and attracting new talent to meet the challenges posed by evolving consumer trends. The critical question remains: how can smaller accommodations compete with these larger players when it comes to attracting and retaining qualified personnel?

Workforce Challenges	Potential Solutions
Skill gaps in relevant areas	Implement tailored training programs and apprenticeship models.
Heavy workload for existing staff	Optimize roles through technology and task delegation.
High turnover rates	Enhance workplace culture and provide growth opportunities.

Addressing these workforce challenges is crucial for sustaining the momentum of growth captured in the barometer. The collaborative effort of hoteliers, policymakers, and educational institutions can pave the way towards a more equipped workforce capable of meeting future demands.

The Role of Alternative Accommodations in Shaping the Industry

With shifting consumer preferences, alternative accommodation offerings—such as those provided by Hostelworld or vacation rentals—are significantly influencing the traditional hospitality sector. In 2025, consumer expectations now lean heavily towards flexibility, sustainability, and authenticity. These preferences are reflected in travel behaviors, with many opting for unique and immersive experiences.

The proliferation of platforms like Airbnb and Booking.com helps customers discover various accommodations that suit their tastes and needs better than traditional hotels. This trend presents both opportunities and competitive pressures for established players in the industry. Recognizing the strengths of alternative accommodations can prompt traditional hotels to innovate.

To adapt, accommodations can:

• Develop unique themes or packages that cater to specific traveler desires.
• Enhance their online visibility and leveraging marketing strategies.
• Offer flexible booking and cancellation policies to attract a wider audience.

As the landscape evolves, some famed hotel chains are responding dynamically. For example, major organizations like Hilton and Marriott are diversifying their portfolios to include distinct lifestyle brands that cater to this new wave of consumer behavior, providing guests with deeper connections to their destinations.

Strategies for Traditional Hotels	Benefits
Unique Themes or Packages	Enhances guest experience and differentiation in a crowded market.
Marketing Strategy Enhancement	Increased engagement and visibility in digital platforms.
Flexible Booking Policies	Attracts a broader audience and promotes customer loyalty.

This transformative journey calls for both traditional hotels and alternative accommodation providers to engage in a constructive dialogue. By sharing best practices, the entire industry stands to benefit from collaborative growth that aligns with contemporary traveler expectations.