A dynamic and segmented Greek hotel market where urban destinations continue to thrive thanks to strong conversions and rising average daily rates (ADRs), while seasonal markets such as the Cyclades and Ionian Islands face distinct challenges, according to new research by hotellab.io.
The analysis is based on a combination of actual, OTB (on the books), and forecast data from HotelLab’s Revenue Management Systems (RMS). It also offers unique insights into national and regional trends in hotel performance, covering Greece’s top tourist destinations: Athens & Thessaloniki, Cyclades, Ionian Islands & Chalkidiki, as well as a comprehensive national overview.
The analysis examines occupancy (OCC), average daily rate (ADR), revenue per available room (RevPAR), length of stay (LOS), and booking window (BW), alongside flight search and exit trends via Skyscanner data.
Overall picture: Market-wide strength with revenue-led growth
National key performance indicators
The Greek hotel sector is showing overall strength in 2025, with performance indicators showing positive trends across all segments.
- Occupancy increased by 7.5% year-on-year (YoY), average daily rates (ADR) increased by 3.17%, and RevPAR increased by 10.9% compared to the same period last year (STLY).
- Forecasts for the full year predict a slight decline in occupancy (OCC) of 2.73%, but a 20% jump in average rates (ADR), resulting in a strong 17% increase in RevPAR.
- LOS showed a marginal increase, particularly in January and after June, indicating longer trip durations during the off-peak months.
National key performance indicators
In terms of booking behavior:
- In 2025, there was a 33% increase in OTB bookings, with cancellations increasing by only 25%, indicating more stable booking intentions.
- Bookings made less than 15 days before arrival have decreased, as have cancellations in this time frame, supporting the trend towards more timely planning.
Hotel visibility periods
Data for regions in Greece: Performance in all key markets in Greece
Cyclades — Opportunity with uncertainty
Hotels in the Cyclades, particularly in Naxos and Mykonos, are performing strongly for the main period of May-October. While Santorini shows greater uncertainty, properties using dynamic pricing are showing positive booking trends compared to the same period last year.
- OTB data reveals increases of 13% in occupancy (OCC), 11% in average daily rate (ADR), and 25% in RevPAR compared to STLY.
- Forecasts indicate a 3.12% increase in occupancy (OCC), an increase of up to 6.53% in ADR, and a 10% improvement in RevPAR.
- LOS is decreasing, particularly from July to September, with increasing interest in 3-4 night stays.
- It is worth noting that cancellations have increased by 73%, mainly due to disruptions in Santorini. However, total bookings have increased by 49%, indicating potential for recovery during the peak months.
RevPar trend by month
Flight searches and clicks to Santorini, Mykonos, and Naxos airports show a decline at the beginning and end of the period (May, September, and October), with a moderate increase in June and July. There is a noticeable trend towards shorter trips.
Searches and CTR
Athens & Thessaloniki — Urban demand with price-based growth
City hotels in Athens and Thessaloniki are performing steadily.
- Compared to STLY, occupancy (OCC) has increased by 8%, ADR by 4.75%, and RevPAR by 13.18%.
- Forecasts predict a 5% decline in occupancy (OCC) but a 20% increase in ADR, increasing RevPAR by 14%.
- LOS is increasing, particularly in December, August, and July.
Booking behavior shows a decline in cancellations (33% in 2025 compared to 40% in 2024) and a greater distribution of the booking window (BW), although short-term bookings and cancellations remain strong in the data for the beginning of the year.
Distribution of bookings and cancellations by month
Flight data for Athens and Thessaloniki show:
- 4% increase in searches, 12% increase in clicks, and an overall increase in conversion to bookings of 13%.
- Germany, Greece, and Israel are the top inbound markets, with Israel showing the largest increase in clicks despite minimal growth in searches.
Ionian Islands — Gradual momentum
In the Ionian Islands, seasonal hotels are showing moderate but positive performance:
Occupancy (OCC) is up 3%, average daily rate (ADR) is up 1.23%, and RevPAR is up 4.54% year-on-year.
- Forecasts point to a 2.03% increase in occupancy (OCC), a 20% increase in average daily rates (ADR), and a strong 22.6% increase in RevPAR, which will mainly come from June and September.
RevPar trend by month
Trends for length of stay (LOS) show a decline in May, September, and October, with a slight increase in August. Due to the seasonal nature of the business, analysis of booking and cancellation windows (BW and CW) is limited; however, cancellations increased by 10% and bookings increased by 33%, signaling growing market confidence.
The main countries of origin are Italy, the United Kingdom, and Germany, with a notable increase in flight searches and clicks from Germany. Length of stay (LOS) is shifting towards shorter stays, reflecting broader trends.
Flight Search Trends
hotellab.io integrates flight search data via Skyscanner, providing valuable context for travel demand.
- Flight searches increased by 8% and clicks by 13% year-on-year, indicating greater intent to travel.
- Germany is the top source country, followed by Athens (domestic), Italy, and the United Kingdom.
- Conversion rates improved in January, April, June, and December, in line with peaks in hotel bookings.
- Trips of 5-7 nights remain dominant, but shorter trips of 3-4 nights are gaining ground, influencing LOS and booking strategies.
Key trends observed
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- RevPAR increase due to ADR. Even in segments with a slight decrease in occupancy (OCC), increases in average daily rates (ADR) are driving revenue growth.
- Shift to longer booking windows. Bookings are increasingly being made 30+ days in advance, reducing volatility.
- City hotels are showing strong conversion. City destinations such as Athens and Thessaloniki are maintaining healthy demand and stable performance metrics.
- Cancellations in the Cyclades are a point of monitoring. Unstable conditions in Santorini require closer monitoring, although overall interest remains strong.
Flight data supports hotel trends.
- Increased airline clicks correspond to higher booking volumes, confirming growing demand.
As hoteliers navigate this complex landscape, insights from hotellab.io, powered by comprehensive PMS and flight data, provide the foundation for making the right data-driven strategic decisions in one of Europe’s most vital tourism markets.
