Chain hotels continue to dominate across the continent, backed by powerful brands, deep pockets and expansive tech stacks.
Yet, as an independent hotelier, you’re not without options.
By understanding current travel trends and leveraging your unique strengths, you can compete – and win.
This blog post explores where demand is heading in the region, why chains are thriving and what independent hotels can do to get more of the action.
European travel demand
Europe remains one of the world’s most sought-after destinations, with travel demand rebounding strongly in recent years.
Summer is the undisputed peak season for the average European hotel, with July and August seeing the highest occupancy rates across the continent.
Southern Europe – particularly Spain, Italy, Greece and Portugal – continues to lead in overall visitor numbers, thanks to its warm climate, iconic coastlines and cultural landmarks. But major cities in Western and Central Europe, such as London, Dublin, Paris, Berlin and Amsterdam, also maintain year-round appeal due to their rich cultural and business offerings, and strong international connectivity.
Northern Europe – including the Nordics and the Baltics – has seen a gradual rise in off-peak travel, particularly among visitors seeking nature, sustainability-focused experiences and cooler-weather escapes.
Meanwhile, Eastern Europe is gaining ground with budget-conscious travelers drawn by lower prices, authentic cultural experiences and growing air connectivity.
The top source markets remain intra-European travelers, led by Germany, the UK, France and the Netherlands. However, North American visitors are returning in strong numbers, while travelers from the Middle East and Asia are showing increasing interest in Europe, especially during the shoulder seasons.
In terms of travel trends, leisure travel dominates, particularly around cultural exploration, gastronomy and wellness. ‘Experience-first’ tourism – where visitors prioritize meaningful, locally grounded experiences over luxury – is also gaining traction.
While big draws like the Eiffel Tower, Colosseum and Sagrada Familia remain high on itineraries, there’s growing interest in secondary cities and lesser-known heritage sites, driven by social media and a desire to escape the crowds.
What does this mean for hotels?
This sustained demand for European travel presents clear opportunities – but also increased competition – for hotels.
With peak season still dominating, dynamic pricing strategies should be at the core of your property’s plans, alongside well-timed marketing campaigns, especially in the lead-up to summer.
However, the growing appeal of shoulder and off-peak travel, particularly if you’re in Northern and Eastern Europe, means there’s value in promoting year-round offerings and creating tailored experiences for emerging visitor segments.
For hotels, especially independents, this is the time to invest strategically in marketing. Highlighting unique local experiences, cultural proximity and personalized service can help cut through the noise, especially as travelers increasingly seek authenticity over uniformity.
Even modest increases in digital marketing spend on social media, Google Ads and metasearch can go a long way when paired with well-crafted, experience-led content.
As an independent hotel owner or operator, it’s also vital to leverage flexibility.
Unlike chains, independents can pivot quickly: offering bespoke packages, tapping into niche trends like wellness or slow travel, and partnering with local attractions or artisans.
By responding faster to market shifts and guest preferences, your independent hotel can position itself as a distinctive, experience-driven alternative to more standardized chain properties, such as Hilton, Marriott, Accor, Hyatt and the rest.
Why hotel chains dominate European travel markets
While Europe has historically been a stronghold of independently owned hotels, the landscape has shifted dramatically over the past decade.
Today, large hotel chains and property management groups enjoy a huge share of the market, particularly in urban centers and high-traffic tourist destinations. This trend has been fueled by a combination of hospitality industry consolidation, brand expansion and evolving traveler expectations.
In the early 2000s, independent hotels made up the vast majority of Europe’s hospitality supply – estimates suggest as much as 75 to 80% in some markets. But over the last 10 to 15 years, there’s been a steady erosion of that dominance.
Chains have expanded aggressively, not only through new builds but by acquiring or affiliating with independent properties via soft brands and franchise models. At the same time, many small operators – facing rising costs, increasing complexity and growing competitive pressure – have either sold to larger groups or left the market entirely.
A key reason chains have gained ground is their scale. With centralized booking engines, loyalty programs, stronger bargaining power with online travel agencies (OTAs), such as Booking.com, Expedia and the like, and deep pockets for marketing, they can drive consistent demand and profitability. Their operational efficiencies and access to data also allow them to respond faster to changing market conditions.
Independent hotels, by contrast, often struggle with limited resources, both financial and technological.
Without large marketing budgets or in-house revenue management teams, many find it challenging to compete on visibility or price. Distribution is another hurdle: chains can dominate OTA listings and metasearch placements, while independents must work harder to be discovered.
This widening gap has created a challenging environment for independents, especially those not actively trying to keep up. Yet, despite the dominance of chains, independents still hold a meaningful share of the market and with the right strategies, you can not only survive but thrive.
How independent hotels can compete with chain hotels
Independent hotels may lack the scale of big brands but they have unique strengths.
So, what is the right approach to competing effectively?
It all boils down to embracing smart technology and delivering truly personalized guest experiences.
Get this right, and, as an independent hotelier, you can streamline your operations, boost visibility and stand out in a crowded, chain-dominated market.
Let’s take a look.
Implement software to save time
For independent hoteliers, time is a limited resource.
Unlike chain properties with dedicated teams for revenue management, marketing and operations, independents often juggle multiple roles at once.
This is where smart software solutions can make a critical difference; by automating repetitive tasks and streamlining day-to-day operations, they free up time for you to focus on what matters most: delivering excellent guest experiences and growing your business.
From pricing to distribution, the right tools can handle tasks that would otherwise consume hours each week.
Not only does this improve efficiency, it also helps reduce costly errors and ensure more consistent performance.
In a competitive market where speed and adaptability are key, software gives independents the ability to respond quickly to market shifts and guest needs, without burning out their teams.
For many, it’s the difference between just staying afloat and gaining a real competitive edge.
Two of the most important areas of consideration are dynamic pricing and channel management, the focus of the two subsections below.
Dynamic pricing solutions
In such a fast-moving travel market, static pricing simply doesn’t cut it. Demand fluctuates constantly – by season, day of the week, even hour by hour – and guests have more tools than ever to compare rates across properties. That’s why software for dynamic pricing has become an essential tool for independent hoteliers looking to stay competitive and maximize their revenue.
A good dynamic pricing solution uses real-time data to adjust room rates automatically based on market trends, competitor pricing, occupancy levels and booking pace.
Rather than relying on gut feeling or manual rate changes, using this technology you can set pricing rules and let the system do the heavy lifting, ensuring your hotel rooms are never overpriced in quiet periods and you’re not leaving money on the table when there’s high demand.
For independents, this kind of automation levels the playing field. It enables you to react with the speed and precision of the big chains, without needing a full-time revenue manager.
With less time spent tweaking rates and more revenue generated from smarter pricing, you can focus on elevating the guest experience – which we come to in a moment. But first, a quick look at channel management.
Channel management tools
With travelers booking through a wide range of OTAs, metasearch platforms and booking engines, managing distribution manually is no longer sustainable, especially for independent hotels.
Channel management tools simplify this process by centralizing inventory and rate updates across all connected platforms in real time.
A good channel manager ensures that room availability, pricing and restrictions are always accurate and consistent, helping you avoid double bookings, missed revenue opportunities and time-consuming manual updates at your property.
It also helps you maintain parity across channels, which OTAs favor in their algorithms, thereby boosting visibility and improving placement in search results.
For independent hotels, a channel manager is more than just a time-saver; it’s a revenue enabler.
By staying visible across more channels with accurate, up-to-date listings, you can capture bookings from travelers who might never visit their direct website.
This kind of reach and efficiency was once the reserve of the big brands; now, with the right tools in place, you can compete head-to-head as an independent – and win – on the same platforms.
Deliver personalized guest experiences
A powerful competitive advantage independent hotels have over chains is their ability to deliver truly personalized guest experiences.
While large hotel brands often operate within rigid brand guidelines and standardized service models, as an independent, you have the freedom and flexibility to tailor every aspect of the stay – from check-in to check-out – to reflect your unique identity and the specific needs of your guests.
Independent hotels are often more closely connected to their local communities, enabling them to offer a place-based authentic experience that chain hotels can’t easily replicate. This might include partnerships with local restaurants, guided tours led by residents or curated welcome packages featuring regional products.
These thoughtful touches resonate deeply with today’s travelers, who increasingly prioritize experiences over amenities alone.
Personalized service is another area where you can shine. With smaller teams and fewer rooms, staff have more opportunities to interact meaningfully with guests – remembering names, preferences and special occasions.
Whether it’s customizing a room setup for a returning guest or offering local tips based on a traveler’s interests, these small gestures build lasting loyalty and repeat business.
Offering unique amenities – such as locally sourced breakfast options, in-room wellness kits or flexible check-in times – can also differentiate an independent property.
Ultimately, independents can focus on hospitality as an art form, not just a process.
In a market where travelers are seeking more connection, character and care, personalized guest experiences aren’t just a nice-to-have; they’re a strategic advantage that your independent hotel is positioned to deliver.
If you’re looking for practical strategies to simplify your workload, boost revenue, and keep guests coming back, The Independent Hotelier’s Handbook is a good place to start.
Gain a competitive edge to drive more bookings
Supporting the independent hotel sector since 2012, and winning hotel industry awards along the way, Lighthouse’s all-in-one software solution and data are helping hoteliers like you to:
- Optimize pricing
- Get ahead in their distribution
- Streamline their hotel management operations across the board
The Lighthouse platform handles the time consuming tasks that drive revenue growth so you can focus on what really matters: your guests.
Get in touch to get onboard.
About Lighthouse
Lighthouse is the leading commercial platform for the travel & hospitality industry.
We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth.
We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.
Trusted by over 70,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners—their success is our success.
For more information about Lighthouse, please visit: https://www.mylighthouse.com.
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