Today's Revenue Management thought:-

During my recent trip to Munich, my flight was canceled due to a snowstorm. I got rebooked on a 6:40 AM flight, and considering the challenging weather conditions from the city center to the airport, I opted to book a hotel nearby. The usual price for this 3-star property is around €80, but due to the circumstances, they were charging over €300.

This experience prompted me to reflect on how consumers perceive price gouging. Although I was irritated, I had found an expensive but necessary solution to my problem.

In an industry that relies on positive experiences, engaging in price gouging can lead to lasting consequences for a hotel's success and reputation. Many customers view it as exploitative and unfair, causing erosion of trust and loyalty.

• Did I feel exploited? Yes !

• Did the hotel create a situation where trust and loyalty were eroded? Not in my case—I had never stayed there before and didn't anticipate the need to stay again.

• Did I leave a negative review? I considered it but opted for a neutral and factual review.

Do you leverage such situations to your property's advantage, and do you foresee any negative consequences of doing so?

Have a profitable week !

✌🏼