Rising travel costs are reshaping guest expectations

Hotels face growing pressure to balance pricing, value perception, and long-term demand

Travel costs have increased significantly in recent years, driven by inflation, higher operating expenses, and widespread ancillary fees across the travel ecosystem. Many travelers now question affordability, especially younger segments, while booking behavior is shifting toward price sensitivity and value clarity. Perceived value — not just price — is becoming a decisive factor in travel decisions. For hoteliers, this trend highlights the need to align pricing strategies with guest expectations and communicate value more clearly.

Key takeaways

• Affordability pressures are rising: Overall travel costs have increased markedly since 2019, influencing how frequently guests travel and how much they are willing to spend on accommodation.
• Value perception matters more than price alone: Guests increasingly compare cost against included services, making transparent pricing and visible value critical for hotels.
• Ancillary fees shape guest sentiment: Extra charges across the travel journey contribute to frustration and can influence hotel choice and brand loyalty.
• Changing booking behavior: Travelers are booking later, comparing options more carefully, and actively seeking predictable pricing.
• Opportunities for value positioning: Midscale and reliable brands with consistent service and fair pricing may benefit from the current affordability focus.
• Seasonality strategies gain importance: Encouraging off-peak travel and targeted promotions can help hotels capture demand while easing price sensitivity.

Source: The Seattle Times

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