“Five-star luxury hotels are theoretically the ones that could benefit the most from revenue management applications due to the superior quality of service and rooms offered, far above average. However, it is often the five-star luxury hotels that hold back due to a series of cultural and psychological factors that prevent them from lowering prices below certain thresholds during low seasons and from raising prices above certain thresholds during peak seasons. As a result, their price range remains relatively narrow and static, even though they could afford more extreme price fluctuations than three- or four-star hotels.
Additionally, I believe five-star hotels are even more suited to implementing what is already a current trend, namely, the personalisation of experiences. Modern technology allows for more precise user profiling and the ability to offer increasingly personalised proposals for each guest. Combined with the wealth of services and experiences that luxury hotels can offer, and with the support of revenue management techniques, these hotels have the potential to achieve much higher prices than in the past, targeting a specific clientele willing to pay these prices, thereby maintaining a high reputation and perceived value for money.”
