Today's Revenue Management thought:-

While price gouging is controversial, hotels might consider it for several reasons.

Firstly, during high-demand periods, dynamic pricing maximises revenue, optimising financial performance.

Secondly, in emergency situations or unexpected events, fluctuating prices can help manage limited resources efficiently.

Thirdly, strategic pricing can incentivize early bookings, reducing uncertainties and improving operational planning.

Lastly, it allows hotels to adapt to market conditions, staying resilient during economic fluctuations.

Nevertheless, ethical considerations and customer perceptions should guide such practices, ensuring that short-term gains do not compromise long-term trust and brand reputation in the competitive hospitality industry.

Have a profitable week !

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