Hotels Embrace Airline-Inspired Unbundled Pricing Models
Major hotel chains are increasingly implementing airline-style unbundled pricing. This new approach allows guests to customize their stay by adding services such as early check-in, room upgrades, and exclusive amenities for additional fees during the booking process. In 2024, over 5,000 Wyndham hotels adopted new technology enabling personalized add-on offers via text messages.
Hotel chains such as IHG Hotels & Resorts, Marriott International, and Hilton Hotels are leveraging AI and innovative technologies to expand their range of optional services. Some notable examples include:
- Early check-in at Howard Johnson near Disneyland
- Beach toy baskets at Days Inn properties
However, traveler reception to these new pricing models has been mixed. Surveys show that only 14% of travelers are willing to pay premiums for better views, and a mere 11% for higher floors. Industry experts highlight the challenge of finding the balance between giving guests control and avoiding the perception of nickel-and-diming. This is especially pertinent as hotels face stiff competition from alternative accommodation providers like Airbnb and VRBO.
Source: NBC News