Be aware: Tricky price increases at Hungarian hotels

The hospitality industry is witnessing a shift in pricing strategies as hotels grapple with cost increases. Traditionally, room rates have been the primary source of revenue for hotels, but rising expenses have prompted them to explore alternative pricing methods. Is there a new trend of introducing obligatory fees for services that were once complimentary, as hotels adapt to the challenges posed by price hikes?

Rising costs and alternative pricing

Domestic hoteliers, facing limitations in raising room rates, are adopting alternative pricing approaches to share their increasing costs with consumers. While average room rates have slightly decreased from their summer peaks, the overall cost of a hotel stay remains high. This has led to a seemingly subtle but in fact significant change in how hotels structure their pricing.

Wellness Hotel Szindbád’s case

The Wellness Hotel Szindbád in Balatonszemes exemplifies this evolving trend. Faced with soaring energy costs, the hotel has implemented a unique pricing system. Portfolio observed that the hotel’s website states that in addition to standard room rates, guests now encounter energy contribution fees, mandatory minibar fees and parking charges. Despite attempts to seek clarification from the hotel management, their response remains elusive.

Guest perspectives and industry insights

Experts, such as Tamás Flesch, President of the Association of Hungarian Hotels and Restaurants, express concerns about the transparency and attractiveness of such pricing models. Flesch emphasises the potential inconvenience and irritation caused by the extra heating or cooling charges, describing them as “in-room accessories”. He suggests that a more viable approach would be to charge for additional wellness services or reconsider parking fees in the overall marketing strategy.

Diverse approaches among hotel chains

While some hotel chains embrace transparent pricing, others are adjusting their strategies to maximise revenue. Roland Sívó, Director of AquaWorld Resort Budapest, notes that dynamic room pricing based on supply and demand is becoming more common. However, they have refrained from removing services from their packages, opting instead to increase the prices of additional services.

Responses from major hotel chains

Balázs Kovács, CEO of Danubius Hotels, rejects the idea of energy cost contributions, emphasising their commitment to dynamic pricing. Meanwhile, Lajos Labossa, marketing and communications director of Hunguest Hotels, acknowledges inflation-driven increases in certain services but maintains a commitment not to exceed guests’ capacity to bear these changes.

While some hotels opt for transparent pricing and dynamic adjustments to mitigate the impact of price increases, others introduce new mandatory fees to navigate these financial challenges. Balancing the need for profitability and guest satisfaction, hoteliers encounter the challenge of adjusting their strategies to cope with the changing landscape within the hospitality sector.

Despite widespread price increases, a Christmas fair in Hungary has successfully maintained affordable prices, read about it HERE.

Source: Portfolio