Airline-style a la carte pricing is landing at hotels
Travelers booking hotel reservations online may soon notice that the process increasingly mirrors what it’s like to buy airline tickets.
Want early check-in or late check-out? More space, a higher floor or a garden view? Pool access or a “hydration station” (aka bottled water) in your room?
Check “yes” before you book and the cost will be added to your basic room rate.
How about milk and cookies for the kids or a gourmet snack box for your dog? Those bonus amenities can be waiting for you in your room, for an added, prepaid fee.
Artificial intelligence and other innovative technologies are turning hotel operators into travel retailers, selling much more than just rooms.
Individual properties can now creatively unbundle and repackage their room inventories, allowing guests to personalize their stays and increasing revenue.
But it can be tricky for a hotel to find the sweet spot between giving guests more control over the details of their stays and leaving them feeling like a hotel is charging for perks that guests expect for free.
At the 14-room Lakehouse Inn in Lee, Massachusetts, a new AI-powered booking platform helps match guests with specific rooms and maximizes returns on each booking.
“Each of our rooms is unique, and previously guests could only book a room type, i.e., king or queen, and then call us if they wanted a specific room,” said co-owner Kurt Inderbitzin.
The Lakehouse Inn’s new booking platform asks prospective guests their preferred room size, bedding, location and view. Then it provides detailed photos and descriptions of a few specific rooms that meet the requests.
The question, then, becomes whether a guest is willing to pay more for a room that’s a little bit more to their liking.
Only 14% of U.S. hotel guests were willing to pay a premium for a room with a better view, and only 11% for a room on a higher floor, according to surveys conducted earlier this year by Atmosphere Research Group, a travel industry market research firm.
“I’m a budget traveler and never spend extra” on perks, said Debbie Twombly, 74, a substitute teacher in Astoria, Oregon.
While some guests may feel nickel-and-dimed if they are asked to pony up for once-standard amenities like bottled water or pool access, others will pay for amenities they view as contributing to the enjoyment of their stay.
Los Angeles-based leadership brand strategist Anne Taylor Hartzell, 50, is fine with paying extra for a better view. “I’ve also paid for a bottle of bubbles to be chilled and waiting in my room,” she said.
At the 79-room Inn at the Market, a boutique hotel tucked in Seattle’s historic Pike Place Market, hotel guests can prepay to have a bouquet of market flowers or a box of fresh macaron cookies from a bakery around the corner waiting in their rooms.

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