Is Pet Travel the RevPAR Strategy Hotels Are Missing?

U.S. hotel RevPAR fell 0.3% in 2025, the first non-recessionary decline ever recorded in the U.S. hotel industry, according to CoStar. Occupancy dropped 1.2% year over year to 62.3%. CoStar and Tourism Economics project just 0.6% RevPAR growth for 2026. In that environment, most revenue strategies are focused on defending rates and cutting costs.

Very few are looking at where genuine demand growth is already coming from.

Pet travelers are one of the most consistent, high-value, and underserved guest segments in hospitality. Their impact on RevPAR is more direct than most hotel operators realize, and it works across all three levers: occupancy, ADR, and ancillary revenue.

Are Pets an Occupancy Lever for Hotels?

Yes, and the data from short-term rentals makes the case clearly. According to AirDNA’s April 2025 Growth Trends Report, pet-friendly properties receive 5.4% more demand than comparable non-pet properties. In a market where CoStar projects 0.6% RevPAR growth nationally, an incremental 5.4% demand lift is not a rounding error. It is a competitive advantage.

During shoulder seasons and low-demand periods, pet travelers represent bookings that properties without clear pet policies simply cannot capture. Guests traveling with pets are not browsing casually. They are filtering specifically for pet-friendly options and will skip a property entirely if the policy is unclear, buried in the fine print, or absent.

That is direct occupancy loss, flowing straight into RevPAR.

Do Pets Move ADR Without Triggering Price Resistance?

Yes, and this is the lever most hotels underuse. Pet fees represent a rate addition that guests accept willingly when the experience feels intentional rather than punitive.

According to NerdWallet’s analysis of major U.S. hotel brands, the average pet fee across all hotels is $76.01, which represents approximately 24% of the average room rate. Hyatt’s average pet fee is $105. Marriott comes in above $94. These are not discounts. They are premium charges that pet-traveling guests expect and pay without the price sensitivity that is squeezing midscale and economy segments right now.

AirDNA’s data confirms the rate premium extends beyond fees alone. Pet-friendly properties earn $17.41 more in average daily rate compared to similar non-pet listings. Hotels that structure pet fees as tiered pricing, per-stay packages, or premium room categories can raise effective ADR without touching base room rates.

What Is the Connection Between Pets and TrevPAR?

Pets are one of the few ancillary categories where hotel guests are actively willing to spend more. Welcome kits, pet menus, grooming partnerships, late checkout arrangements, and local pet service referrals all generate revenue that the room rate alone does not capture.

Pet travelers also plan more deliberately and cancel less frequently than the average leisure guest. That means higher realized revenue, not just booked revenue. In a year when ancillary spending softened broadly, pet-related services represent a genuinely growing spend category within a contracting one.

How Does a Pet Program Improve RGI?

The RevPAR Index (RGI) compares your performance against your competitive set. A score above 100 means you are outperforming. In most comp sets, the majority of hotels either do not allow pets or allow them poorly with unclear policies, no amenities, and no staff training.

In most markets, the majority of properties either do not allow pets or manage them poorly, with unclear policies, no amenities, and no staff training. That creates a structural opening.

The table below shows how pet-friendly positioning affects each component of hotel performance against a competitive set.

Performance Metric	How Pets Affect It	Data Point
Occupancy	Pet-friendly properties receive measurably more demand	+5.4% demand vs. non-pet (AirDNA, 2025)
ADR	Pet fees add to rate; guests accept premium willingly	Avg. pet fee: $76.01, or ~24% of room rate (NerdWallet)
Average Daily Rate differential	Pet-friendly properties earn more per night overall	+$17.41 ADR vs. comparable non-pet (AirDNA, 2025)
TrevPAR	Ancillary pet services add revenue beyond room rate	Pet guests plan more deliberately, cancel less
RGI	Differentiation vs. competitors who lack pet programs	Most comp sets weak on pet-friendly execution

Conclusion

In a 2026 market where CoStar projects 0.6% RevPAR growth nationally and rate defense is the dominant strategy, pet-friendly programs are one of the few levers that work across all three performance metrics simultaneously. Occupancy lifts because pet travelers filter specifically and book with intent. ADR rises because pet fees are accepted as part of the experience. TrevPAR grows because pet guests spend on ancillaries that their non-pet counterparts do not.

Most comp sets are weak on pet-friendly execution. That is not a threat. It is an opening. Hotels that build a structured, well-marketed pet program are not just capturing a niche segment. They are building a RevPAR advantage that most competitors will not see coming until the numbers show up in their benchmarking data.

Frequently Asked Questions

Did U.S. hotel RevPAR actually decline in 2025?

Yes. RevPAR fell 0.3% to $100.02 in 2025, the first non-recessionary RevPAR decline ever recorded in the U.S. hotel industry, according to CoStar data published in January 2026.

How do pet-friendly properties perform compared to non-pet properties?

According to AirDNA's April 2025 Growth Trends Report, pet-friendly properties receive 5.4% more demand and earn $17.41 more in average daily rate than comparable non-pet listings.

What is the average hotel pet fee?

NerdWallet's analysis of major U.S. hotel brands puts the average pet fee at $76.01 per night, representing approximately 24% of the average room rate. Hyatt averages $105 and Marriott averages above $94.

How do pet fees affect ADR without hurting rate perception?

Pet fees are accepted as part of the experience by pet-traveling guests, who book with intention and are not as price-sensitive as the general transient market. Structuring fees as tiered packages or per-stay charges raises effective ADR without broad rate increases.

What RevPAR growth is projected for 2026?

CoStar and Tourism Economics project 0.6% RevPAR growth for full-year 2026, per their February 2026 forecast. ADR is expected to rise 1%, while occupancy dips slightly to 62.1%.