It’s no secret that guests are paying more for their hotel stays these days.
But according to Robyn Mark, partner at New York-based Mayamaya Travel, most of her luxury clients aren’t “batting an eye” when it comes to ponying up for high-end properties.
“We’ve never seen this kind of spending before,” said Mark. “And it’s not that the number of bookings has increased but that our revenue has grown so much because the price of hotels has increased significantly.”
However, where Mark does occasionally hear client murmurs of discontent is in the area of ancillary costs.
“Sometimes the complaints do come in because someone’s like, ‘Well, I liked that hotel, but I’m not going to go back, because I couldn’t believe how expensive lunch was every day at the beach,’” she said.
For example, Mark said that a pair of honeymooning clients had no qualms about extending their stay at a safari property that runs from $4,000 to $4,500 per night, but when it came to adding the hotel’s airport transfer service, they balked at the price, opting to use Uber instead.
“After paying crazy prices for just a room, it can be harder to stomach other pricing that you see broken out like that,” Mark said. “There’s just something in our psyche that reacts [negatively] to that.”
And it’s not just a combination of strong demand and inflationary pressures driving hotel rates ever higher. Guests are also being hit by resort fees and other pesky charges buried in the fine print, which can drastically increase a hotel’s nightly cost.
While sticker shock for hotel add-ons remains prevalent, properties are increasingly aware that guests, even the most well-heeled ones, feel like they are being “nickeled-and-dimed.” In an attempt to mitigate that, a growing number of high-end hotels are enhancing their value proposition by bundling various inclusions into their nightly rate, whether that means a hearty breakfast spread, roundtrip airport transfers, an all-inclusive minibar or daily afternoon tea.
Many advisors applaud the inclusions, saying that complimentary extras provided to their luxury clients are always a nice perk.
“People are definitely cognizant of the fact that they’re already paying for a very expensive room,” said Nancy Deane, a luxury travel advisor with Fora X. “And the costs once you’re on property are also soaring, so guests can sometimes be surprised by some of those added expenses. But when hotels can take away that feeling that everything is an add-on, it can be a much more elevated and elegant approach.”
Mark agreed, adding that while included extras may not be the sole reason a client books a hotel, they can significantly boost guest satisfaction, especially amid periods of higher-than-usual hotel pricing.
“People may not choose a hotel just because of that complimentary amenity, but when they check out and they’re not charged for some things, it does make them remember that stay in a different way,” Mark said, adding that even prior to the pandemic, she had noticed a trend toward more hotels making minibar offerings complimentary.
“It’s just a nice thing to do when you’re at a certain level and people are spending a certain amount to stay there,” she said. “And it really costs the property so little to make the chips and snacks complimentary. Most people won’t eat it, but for those that do it’s such a nice perk to know that you can actually grab those M&Ms and not be charged $8.”
