Guests are focusing on value, not price

As travelers become more aware of hidden fees and reduced inclusions, hotels must compete on perceived value rather than headline rates

Travelers are becoming increasingly skeptical of low advertised prices that come with additional fees, restrictions, or fewer included services. Across the travel industry, airlines, hotels, and other providers have spent years unbundling their products and monetizing features that were once considered standard. As a result, consumers are paying closer attention to what they actually receive for their money and are evaluating travel purchases through the lens of value rather than price alone.

Key takeaways

• Value is becoming more important than price: Travelers are increasingly comparing the total experience they receive rather than simply choosing the lowest available rate.
• Guests are scrutinizing additional fees: Resort fees, parking charges, premium Wi-Fi, and other surcharges are attracting greater attention as travelers seek transparency in pricing.
• Perceived downgrades can damage trust: Removing previously included amenities while increasing prices may negatively affect guest satisfaction and loyalty.
• Ancillary revenue remains important: Hotels continue to look for opportunities to generate additional revenue, but successful upselling depends on delivering clear and tangible value.
• Transparency can be a competitive advantage: Properties that communicate clearly what is included in the room rate may be better positioned to build trust and improve conversion.
• Independent hotels may benefit: Boutique and independent properties often have greater flexibility to create simple, inclusive guest experiences that differentiate them from larger competitors.
• Marketing should focus on value creation: Hotel messaging that highlights benefits, experiences, and inclusions may resonate more strongly than campaigns focused solely on price discounts.
• Guest expectations are evolving: Today's travelers increasingly expect the price they pay to align with the experience they receive, making perceived value a critical factor in booking decisions.

Source: Christopher Elliott

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