How unbundled, data-driven pricing models could reshape guest experience and hotel revenue
Dec 2, 2025
Hotels are beginning to adopt airline-style pricing models that unbundle the traditional room rate and allow guests to pay only for the services they value. AI-driven analytics are enabling this shift by helping hotels understand preferences, anticipate needs, and present tailored add-ons in real time. The approach aims to increase guest satisfaction through customization while unlocking new revenue opportunities for hotels. The article highlights both the potential benefits and the risks, emphasizing that clarity and thoughtful design are essential for guest acceptance.
Key takeaways
- AI-enabled unbundling: Hotels are moving toward separating room rates from add-on services, mirroring the airline model of charging for seat selection, baggage, and other extras.
- Personalized upselling: AI helps identify guest preferences and behaviors, enabling hotels to offer individually relevant upgrades such as early check-in, wellness services, or premium views.
- Greater guest control: Travelers gain flexibility to design their stay by selecting only the amenities they want, potentially saving money by opting out of unused services.
- Risk of decision fatigue: Presenting too many choices can overwhelm guests, making thoughtful interface design and AI-driven simplification essential.
- Shift to anticipatory service: The focus moves from reactive pricing to predictive engagement, where hotels anticipate needs rather than simply offering standard packages.
- Enhanced loyalty potential: Tailored experiences can strengthen guest satisfaction and long-term loyalty when executed with clarity and consistency.
- Balance between value and fees: Success depends on avoiding the perception of “nickel-and-diming” by ensuring each optional fee clearly adds value for the guest.
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