PHILIPPINE HOTELS are projected to see revenue growth this year, driven by demand from international visitors, according to hotel e-commerce platform SiteMinder.
“The rise in room rates, fueled by strong international bookings, provides a solid foundation for Philippine hotels to maximize revenue in 2025,” Bradley Haines, regional vice-president for Asia-Pacific at SiteMinder, said in an e-mail.
Philippine hotels saw a 2.91% uptick in their average daily rate (ADR) to $125.03 in 2024 from $121.49 in 2023, according to SiteMinder’s Hotel Booking Trends Report. The ADR for local hotels peaked at $144 in December.
Last year, the Philippines was the only country to post double-digit growth in international hotel bookings at 13.6%, rising to 54.44% from 47.94% in 2023.
“Our data show a strong upward trend in international arrivals at Philippine hotels, with their share of bookings rising steadily from 16.54% in 2021 to 54.44% in 2024 — a notable 229% increase. This momentum suggests continued growth this year.”
Local hotels have been an attractive choice for foreign travelers as they offer both year-round appeal and experience-driven stays, according to Mr. Haines.
Foreign tourists booked their stays at Philippine hotels an average of 25 days in advance last year, up from 23 days in 2023. This was the second-highest lead time in Asia, behind Thailand (27 days).
About 89% of 2024 stays at Philippine hotels averaged up to two nights, while 11% lasted three nights or more, surpassing most Asian markets.
SiteMinder data showed a “less pronounced” gap in bookings between the December peak (9.73% of total bookings) and the September low (7.34%), suggesting that hotel bookings are more consistent throughout the year than seasonal.
However, around 16% of bookings at local hotels were canceled, a slight (2%) uptick from last year.
To sustain growth momentum, Philippine hotels must focus on data-driven strategies and respond to changing traveler preferences, according to Mr. Haines.
“Local hotel operators that leverage market intelligence to understand when and where guests are booking, along with dynamic pricing to capture demand more effectively, will be better positioned for growth.”
In its latest Changing Traveller Report, SiteMinder expects the continued boom of event travel and “workcations” this year.
Data showed that 65% of global travelers said they are likely to travel for concerts, sports tournaments, and festivals. Likewise, 41% plan to work during their stay.
SiteMinder also reported that 36% of travelers globally look up hotels via search engines, followed by online travel agencies (18%), online forums (11%), social media (11%), friends or family (7%), travel fairs (5%), and online travel blogs (5%).
According to the report, 46% plan to book a standard room for their 2025 stays, followed by a superior room (33%), deluxe room (14%), executive room (4%), and suite (3%). About 24% return to hotels for loyalty benefits.
Booking.com and Agoda were the top booking platforms for Philippine hotels last year, according to SiteMinder. Direct bookings remained strong, being the third-largest source of revenue for local properties.
Other popular booking platforms for foreign tourists include Expedia Group, Trip.com, Hotelbeds, Klook, DidaTravel, WebBeds, Tiket.com, Traveloka, and MG Bedbank. — Beatriz Marie D. Cruz
