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Why Price-Gouging at Luxury Hotels Could Backfire

Colin Nagy photo
Colin Nagy
Patina Maldives Fari Islands luxury hotel

Photo Credit: Patina Hotels & Resorts, owned by Capella Hotel Group, had been slated to open Patina Maldives Fari Islands by this month. This column did not delve in any way into pricing at this particular property. Patina Hotels & Resorts

Skift Take

There's a danger in the surging average daily rates as travel takes off: Luxury hotels don't have the staff or the ability to live up to inflated rates. This presents a long-term danger to carefully cultivated brands.

Series: On Experience

On Experience

Colin Nagy is a marketing strategist and writes on customer-centric experiences and innovation across the luxury sector, hotels, aviation, and beyond. You can read all of his writing here.
In the U.S., revenge travel is real. Post the second jab, people are predictably running to their computers, war-dialing the Delta Diamond Medallion line, and frantically Google searching entry requirements to get into Costa Rica. Predictably, this surge in demand has led to — shocker — higher prices. A friend that wanted to book a weekend jaunt for a friend’s birthday in Miami was blown away to see even not-great hotels on South Beach in Florida trading for $1,500 dollars a night like it was nothing. But, the desire for travel won out and she paid Aman-level rates for a trendy, but decidedly not five-star property on the sandy strip. When Covid was in full swing, luxury hotels had the difficult task of staying open, remaining staffed, and trying to keep up with the standards that people generally expect

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