FlyerTalk Forums - View Single Post - Marriott US resorts pricing $1,000 USD per night through the end of 2022
Old Nov 4, 2021 | 9:55 am
  #51  
GUWonder
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Originally Posted by UA-NYC
It's almost like those who can afford luxury hotels...maybe have done pretty well during the pandemic? https://www.cnbc.com/2021/10/18/the-...us-stocks.html

And people are traveling again (including from Europe, with lots of pent-up demand)?

Not exactly rocket science. Some should also take the time to read through: https://www.investopedia.com/terms/p/priceskimming.asp
From Europe, can’t say it should be shocking that December in NYC and Miami is a more popular destination than Chicago.

I wouldn’t be so confident that price-skimming is as relevant to the high-priced end of the market as to other segments of the market. Various airlines that figured out how to get by with long-haul international flights during the pandemic ended up keeping regular paid economic class fares high because the elasticity of demand allowed them to do so and they didn’t need full flights to make the economics of the operated flights work out with reduced “occupancy”. Let’s see how things develop with such travel pricing in the time ahead.

Hotels in high demand destinations have taken much the same approach (as some airlines when it comes to long-haul flying). And just because demand is getting hot, the hotel owners/operators don’t burn up the lessons playbook used during the pandemic whereby cutting costs and maximizing revenue and margins per occupied room are more to their advantage than trying to engage in extreme price-skimming across all possible rooms.

Last edited by GUWonder; Nov 4, 2021 at 10:18 am
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