Trends in Europe March 2025: a two-speed hospitality business by MKG Consulting

March 2025 revealed a mixed picture for the European hotel industry. Several segments saw their performances fluctuate, in particular the budget and economy segments, with domestic customers less able to multiply their stays due to the economic context. While Eastern Europe is once again doing well, with strong growth, other regions, such as North-Western Europe, are struggling to return to a positive trajectory.European hotel performances are very uneven from one range to another. After returning to a degree of stability last month, the budget and economy segments plunged back into the red, with RevPAR declines of -10.2% and -2.4% respectively. The midscale segment is also experiencing a slight decline in performance (-0.5%), with the upscale segment being the only one not to be caught up in this downward trend (+0.9%) thanks to the international clientele.