Luxury hotels are done competing on price. Here’s what they’re doing instead.
Luxury hotels are done competing on price. Here’s what they’re doing instead.
https://hotelsmag.com/news/luxury-hotels-are-done-competing-on-price-heres-what-theyre-doing-instead/
Guido Rossi Monti is a hospitality strategist and director at Borgo Vescine
For decades, price has been one of the most immediate and measurable levers in the hospitality industry. When demand softened, rates dropped. When competition increased, discounts followed. It was a simple, almost instinctive reaction.
Today, however, this model is reaching its limits, especially in the luxury segment.
Competing on price in luxury hospitality is not only increasingly unsustainable; it is fundamentally contradictory. Luxury, by definition, is not meant to be optimized for affordability. It is meant to be perceived, desired and experienced as something distinct.
And yet, many properties still fall into the trap of rate-driven competition, often triggered by short-term occupancy pressure or the visibility of competitor pricing. The result is a gradual erosion of identity. When a hotel starts adjusting its value based on others, it inevitably loses control of its own positioning.
What is emerging instead is a different approach, one that shifts the focus from price to value.
But value, in this context, is not a matter of adding more services or inclusions. It is about meaning.
The most forward-thinking boutique hotels are redefining their offering not by asking “What can we include?” but rather “What do we represent?” They are building environments where every element, from architecture to cuisine, from service rituals to communication tone, contributes to a coherent narrative.
This is where storytelling becomes strategic.
A hotel is no longer just a physical space. It is a story guests choose to enter. And like any compelling story, it must be clear, authentic and consistent across every touchpoint. The design of experiences, in this sense, is not an operational detail—it is the core of value creation.
A cooking class, for example, is not simply an activity added to a list of services; it becomes a way to connect guests with local culture, traditions and people. A wine tasting is not just a product; it is a moment of interpretation, a narrative of territory and craftsmanship. Even a simple dinner can become an expression of identity when it reflects a philosophy rather than a menu.
This level of intentionality changes how value is perceived.
Guests are no longer comparing prices in isolation. They are comparing meanings, emotions and uniqueness. Two properties with similar rates can exist in entirely different competitive spaces if one offers a clearly defined identity while the other remains generic.
In this context, discounting becomes not only unnecessary but potentially damaging.
Frequent rate reductions train guests to wait, to compare and ultimately to question the intrinsic value of the experience. Over time, price becomes the primary language of communication, overshadowing everything else. The hotel risks becoming interchangeable.
On the contrary, when value is clearly expressed, price becomes a consequence rather than a driver.
This does not mean ignoring revenue strategy. Instead, it requires a more sophisticated approach. Revenue management in luxury hospitality is no longer just about optimizing rates based on demand patterns; it is about aligning pricing with positioning.
If a hotel claims uniqueness but communicates through discounts, there is an inconsistency that guests perceive immediately. If the narrative, the experience design, and the communication all reinforce a clear identity, higher rates become justified and accepted.
This is particularly relevant for boutique properties, which often operate with smaller inventories and greater flexibility. Their strength lies in their ability to curate rather than standardize. They can shape experiences with precision, adapt to guest profiles and create a sense of intimacy that larger structures struggle to replicate. This allows them to move away from volume-based strategies and focus on depth, on the quality and intensity of each stay.
The shift, however, is not purely operational. It is cultural.
It requires moving from a mindset of “filling rooms” to one of “creating value per guest.” It involves rethinking success metrics, placing greater emphasis on total guest value rather than occupancy alone. It demands consistency across departments, where marketing, operations and revenue management are aligned around a shared vision.
Perhaps most importantly, it requires confidence. Confidence to maintain positioning even in periods of lower demand. Confidence to resist the instinct to discount. Confidence to believe that a well-defined identity will attract the right audience, rather than trying to appeal to everyone.
Because in the end, luxury is not about being accessible to all. It is about being meaningful to the right ones. And in a market where options are abundant and information is immediate, the real competitive advantage is no longer price.
It is clarity of identity, depth of experience, and the ability to make guests feel that what they are choosing is not simply a place to stay, but something they cannot find elsewhere.
Passenger Booted From Plane for Refusing to Get Off Phone
Shutterstock / YAKOBCHUK VIACHESLAV
https://www.fodors.com/news/photos/passenger-booted-from-plane-for-refusing-to-get-off-phone
And other travel news you may have missed.
This week in travel, we have several stories that may have flown under your radar. Among them: Japan Airlines is starting a two-year trial with humanoid robots; three people have died on a small cruise ship due to a suspected virus outbreak; a passenger was removed from a flight for refusing to hang up their phone; and a group of foreign tourists exposed themselves while traveling in a tuk-tuk in Thailand.
Dive into these and more as we examine the latest in travel news.
1 OF 5
Japan Airlines Is Testing Humanoids as Baggage Handlers
Amid labor shortages and increasing tourist numbers, Japan Airlines is testing humanoid robots to help ease workers’ loads. During a two-year trial period, the Chinese robots will assist with ground operations such as loading and unloading cargo containers. The airline hopes that, in the future, these robots will also take over cleaning duties in cabins and operating ground support equipment.
With an aging population, Japan has automated many parts of daily life. By having robots handle physically demanding labor, the airline aims to unburden its employees. However, the airline notes that security operations will remain the responsibility of humans.
PHOTO: Hairem/Shutterstock
2 OF 5
Airline Removes Passenger for Not Hanging Up Phone
A Delta Air Lines passenger traveling from Miami to Atlanta was removed from the flight for not hanging up the phone despite numerous requests. The airline said crew members asked the passenger not to use the phone while the plane was taxiing. The passenger did not comply and became “disruptive.” Fellow passengers also urged the person to be considerate. Due to the non-compliance, the plane returned to the gate, and the passenger was removed from the flight. The plane departed an hour late, and the airline apologized for the inconvenience.
PHOTO: ERGIO DELLE VEDOVE/SHUTTERSTOCK
3 OF 5
Foreign Tourists Expose Themselves While Traveling in a Tuk-Tuk
A group of foreign tourists is facing criticism after photos of them exposing themselves went viral. The unidentified tourists stood up in the vehicle and pulled their pants down, exposing their private parts to motorists.
Inappropriate tuk-tuk stunts have become common and are leading people to question Thailand’s visa-free policy. In February, a video of two French tourists engaging in a sex act in a tuk-tuk drew criticism in Thailand. A man and a woman were recorded behaving inappropriately in full view of others on the road. They were later identified, blacklisted from the country, and deported.
PHOTO: SHARON WALDRON/UNSPLASH
4 OF 5
Three Die on Cruise Ship Due to Suspected Virus Outbreak
Three people cruising on the MV Hondius in the Atlantic Ocean have died. Hantavirus has been confirmed in one individual from the U.K. who is currently hospitalized in Johannesburg, South Africa. Hantavirus is a rare infection caused by rodent droppings. It typically has flu-like symptoms, but patients can develop respiratory issues as it progresses, and it can also lead to heart failure.
The ship, operated by Oceanwide Expeditions, set sail three weeks ago from southern Argentina and stopped in Antarctica, the Falkland Islands, Nightingale Island, and other locations. A 70-year-old Dutch national became unwell first and died on April 11. When the ship docked at St. Helena on April 24, his body was removed, and his 69-year-old wife also disembarked. The cause of death was not determined. While returning to the Netherlands, his wife also became ill and died. She was also Dutch.
The third person, a German national, died on board on Saturday. Two other people are currently unwell on the ship. However, the company has stated that hantavirus has not been confirmed in these two cases.
The ship is currently off the coast of Cape Verde with 149 people of different nationalities on board.
5 OF 5
‘Love Actually’ Door Goes Up For Sale
On May 7, the white door from the romantic comedy Love Actually is going up for auction. The popularity of the door, located in London’s Notting Hill, has forced its owner to deal with fans for decades. Travelers hoping to photograph the door will have to look elsewhere.
Priced up to $6,780, it is being sold at Omega Auctions. The auction house’s manager, Dan Muscatelli-Hampson, said, “Our vendor enjoyed the process of being part of the film but is hoping that someone else can take over ownership and that she might have a little bit of a relief from the thousands of Notting Hill tourists hoping for a snap in front of its most famous door!”
Your Spirit Ticket Is Now Worthless — Here’s What You Can Do Next
Ken Wolter/Shutterstock
https://www.fodors.com/news/news/spirit-airlines-shuts-down-what-passengers-need-to-know-about-refunds-and-rebooking
Spirit Airlines has ceased operations, leaving thousands stranded. Here’s how refunds work, what happens to points, and how passengers can rebook flights.
Spirit Airlines ended 34 years of airline operations early Saturday morning, leaving airports and call centers unstaffed and hundreds of the airline’s yellow-hued aircraft parked in clusters at airports around the country. The country’s 7th largest airline ended service with a message on the airline’s website indicating that passengers with tickets wouldn’t be able to get help on the phone or at the airport, but should wait for refunds to be automatically processed.
The airline carried between 50,000 and 60,000 passengers per day throughout the United States, the Caribbean, Central, and South America prior to the shutdown. Spirit was famous for its ultra-low cost business model and unhinged advertising, charging passengers extra for everything from checked bags to paper boarding passes.
Spirit raked in profits in the early 2010s by offering low fares and bare-bones service. It also gained attention on social media for advertising the delivery of its 69th aircraft with a nudge and a wink, and driving a pole-dancing stripper through Las Vegas on the back of a truck. Other ads made light of the Anthony Weiner sex scandal and the 2010 Deepwater Horizon oil spill.
Large network carriers ultimately rolled out fare products designed to compete with Spirit’s unbundled fares, but with the added benefits of their full-service onboard experiences and extensive frequent flier programs. Engine availability on the airline’s Airbus aircraft also hampered network growth and operational reliability, and the once high-flying airline had not turned a profit since 2019.
After the pandemic, other airlines returned to profitability and found that the industry landscape had changed. The most profitable customers weren’t paying fees for boarding passes or seat assignments; they were buying first-class upgrades or extra legroom seats—things Spirit had limited numbers of. The most cost-conscious passengers that made up Spirit’s bread and butter, squeezed by inflation, were dropping out of the market entirely.
A federal judge blocked a proposed merger with JetBlue in 2024 that sent both airlines scrambling to find new strategies and sent Spirit into bankruptcy. Spirit emerged from the first bankruptcy, then entered another the following year. In the midst of its restructuring, the Iran War ballooned fuel costs, quickly sapping the airline’s cash flows.
What Spirit Airlines Passengers Should Do Next
The shutdown has functionally turned the airline’s tickets into wallpaper, but anyone who paid with a credit or debit card will be receiving a refund for the airfare, plus any prepaid extras like bags or seat assignments.
There are a few exceptions. Passengers who paid for their tickets with frequent flier points, promotional vouchers, or credits won’t be refunded. They’ll become creditors in the bankruptcy process and have to file separate claims. Passengers who booked and paid via a travel agency can contact their agency for assistance.
Spirit has already processed the refunds, but noted it could take time to appear on statements. Passengers can also check refund status on the website, but the airline directed further questions to their bankruptcy claims processor, as there are no longer customer service staff to field customer inquiries.
Spirit Airlines Memberships and Points
Spirit passengers can also pretty much count on their points now being worthless, and gift cards will likely have also lost their value without the possibility of recovery. Loyalty points and gift cards are rarely honored in bankruptcy proceedings, such as the ATA Airlines and Aloha Airlines shutdowns in 2008. Frequent fliers with both of those airlines lost the value of their points and gift cards.
Southwest Airlines is offering to match status to members with Spirit Silver or Gold status in their own Rapid Rewards program, but has not offered to match any point balances.
Spirit is not offering refunds of membership fees for its Spirit Savers Club program. Avelo Airlines will offer up membership its own membership discount program to Spirit Savers Club members, but the two airlines had relatively little route overlap.
Can Spirit Airlines Passengers Rebook on Other Airlines?
Because Spirit is refunding tickets directly to passengers, there’s no need to endorse them to other airlines, and there are no Spirit employees to offer assistance with rebooking; passengers must rebook themselves.
Most airlines are offering limited-time fares to help accommodate passengers whose travel plans have been disrupted by Spirit’s closure. One exception is Alaska Airlines and subsidiary Hawaiian Airlines, which had virtually no overlap with Spirit’s network, although an Alaska Airlines spokesperson said they would help passengers where they could and encourage Spirit employees to apply for open positions at Alaska, Hawaiian, or Horizon Air.
Avianca and LATAM Airlines are offering to rebook passengers who have already flown the outbound half of a round-trip ticket to return home, provided passengers pay any taxes or surcharges associated with their travel. They said passengers should go to the ticket counter no earlier than the day prior to the original planned return date to be accommodated on a first-come, first-served basis.
Southwest Airlines is making special fares available in overlapping markets through May 6, and passengers must book at one of the airline’s ticket counters and show proof of their Spirit flight.
Frontier Airlines, Delta Air Lines, American Airlines, and Avelo Airlines offered information on their websites to displaced Spirit passengers, allowing most to book new tickets on their websites. JetBlue said that affected Spirit passengers should call their toll-free reservations number for assistance rebooking.
Weak World Cup demand not enough to quell hotel asset managers' burgeoning optimism
Sentiment on revenue growth, deals environment improve in survey
A FIFA World Cup advertisement featuring the hashtag #WEARE26 at Newark Liberty International Airport in New Jersey. Hoteliers have raised concerns that travel demand around World Cup matches is coming in weaker than expected. (Photo by: Deb Cohn-Orbach/UCG/Universal Images Group via Getty Images) (UCG/Universal Images Group via G)
https://www.costar.com/article/1897487029/weak-world-cup-demand-not-enough-to-quell-hotel-asset-managers-burgeoning-optimism
WASHINGTON, D.C. — Hotel asset managers have increasing hopes that their properties will exceed their original expectations for revenue growth this year, but they don't believe the World Cup is going to be a major reason for that.
The spring edition of the Hospitality Asset Managers Association's biannual survey showed an uptick in members expecting to beat budget this year for revenue per available room.
More than half of those surveyed say they expect a 1% to 3% increase in RevPAR this year, with more than 10% projecting an increase of more than 7%. Similarly, more than half of the members surveyed expect the majority of their hotels to beat budgeted projections for the full year.
A similar ratio of HAMA members believe the majority of their properties will beat profit estimates for 2026 as well.
Members of HAMA's board of directors said this sentiment was somewhat surprising, given it directly contrasts with decreasing hopes tied to the World Cup. The monthlong series was initially projected to buoy hotel performance across the country this summer, but hoteliers so far aren't optimistic ahead of the matches.
"By and large, we've all taken down our estimates for the summer," said Dina Winder, HAMA president and executive vice president of asset management for Highgate, noting the number of people who expect RevPAR to grow significantly has "more than doubled" since their fall survey.
Chad Sorensen, managing director and CEO of CHMWarnick, said the increased optimism might relate to this year being relatively less volatile than 2025.
"Generally speaking, [the first quarter] is playing out the way that we underwrote it as we went through the budget," he said. "Q1 2025 did not play out the way we budgeted and underwrote it. So it's not like the industry has been set on fire."
At this point last year, hoteliers were afraid of the effects widespread tariffs and the resulting economic upheaval would have on their businesses, HAMA members pointed out. This year's prevailing concerns revolve more on the potential of a demand-inducing event — the World Cup — not coming in as strong as originally hoped.
While performance in the first quarter varied greatly from market to market — HotelAVE Senior Vice President John Paulsen noted the Northeast in particular faced some challenges, including snowstorms in the first quarter. Pessimism around the World Cup seems to be an almost universal phenomenon.
"I think we've all taken it down in terms of what we thought we would do," he said. "It's not the home run we were hoping for, but maybe it's a double."
Sorensen noted the World Cup is challenging not only because demand has come in lighter than expected but also because it chased away other forms of demand.
Much like the fall 2025 iteration of the survey, demand remains the top concern among respondents, although only slightly more than 60% now rank it as a concern compared to almost 80% in the fall. Other top concerns include the war in Iran and wage increases, neither of which was among the top three concerns for hotel asset managers in the fall.
Asset managers seem to be broadly optimistic about the economy, with the number of them expecting the U.S. economy to fall into a recession in 2026 falling to less than 20%. That's roughly half the number of those who expected that in the fall.
There's also been an uptick in asset managers who say they are "actively pursuing acquisitions," which now comes in at over 70%.
Sorensen noted that this is tied in part to monetary policy and how fewer investors are feeling inclined to sit and hope for better interest rates.
"The capital markets are where they're at, and it's not like you can wait it out," he said. "That's what's forcing some of these [deals]. They've just run out of runway, and it's not like anybody believes there's going to be anything much different in the capital market in the next few months."
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