The Psychological Shift When Increasing Nightly Rates

Adam and Larry Mogelonsky | August 30, 2023

By Adam and Larry Mogelonsky However much we think of dynamic pricing and yield management as a science, there’s still an art to it because underpinning every hotel reservation is human emotion. To help explain concepts like this, a little numerical exploration can really shine a light on things. Let’s start with smaller numbers to give this an opening perspective. We’re both big fans of wine, so consider a bottle of table wine. Imagine that the marketing gurus at whichever the chosen wine brand is have a chat and decide that the optimal price for this bottle is a clean $10.00. But that’s a full four digits, and you well know fr...