Booking.com has published the fifth edition of its European Accommodation Barometer, offering insights from 1,160 executives and managers of accommodation providers across Europe on industry prospects, opportunities, and challenges. The research, conducted in partnership with Statista, paints a largely optimistic picture ahead of the peak 2025 tourist season, with Southern Europe—including Croatia—emerging as one of the most confident regions.

High Optimism in Croatia and Southern Europe

Despite geopolitical and economic uncertainties, 63% of European accommodation providers have a positive outlook for the upcoming season, nearly matching last year’s record (65%) and well above the 2022 low of 38%. Optimism is particularly strong in Croatia, Greece, Italy, Spain, and Portugal, while Central and Northern Europe report more cautious sentiment.

Most accommodation providers (62%) plan to maintain their current level of investment in the coming months. However, hotel chains are more likely to pursue proactive investment strategies compared to smaller, independent properties.

Hiring Remains a Key Challenge

Staffing is a top priority ahead of the busy season. On average, European hotels expect to hire 3.59 new employees over the next 12 months, with independent hotels planning fewer hires (2.72) than chains (5.85). Seasonal roles with lower skill requirements are relatively easy to fill, but skilled senior positions—such as general managers or marketing professionals—remain challenging due to high salary expectations (56%) and work-life balance concerns (52%).

A lack of necessary skills or experience is a significant hiring obstacle for 47% of respondents. Smaller, independent properties are particularly affected, with 17% offering no staff training at all, compared to just 2% of hotel chains. Chains are also more likely to partner with external training providers and offer online courses.

Digital Technology and AI Adoption Lagging Behind

Two-thirds of European accommodation providers see potential benefits of artificial intelligence in marketing, customer service, and revenue management. However, high implementation costs (61%), integration complexity (58%), and a shortage of technical expertise (53%) remain major barriers—particularly for smaller operators.

The report warns of a widening “digital divide,” where smaller properties risk missing out on technologies that could enhance competitiveness and long-term success.

“While it’s encouraging to see such confidence ahead of the 2025 season, we are also aware of the challenges the industry faces,” said Carlo Olejniczak, Vice President and Managing Director for EMEA at Booking.com. “Our goal is to listen closely to accommodation providers, strengthen their role, and foster greater collaboration across the sector.”