Guests do not abandon your direct site or pick entry-level rates because they are penny-pinching. They choose the cheapest option when your booking engine or menu gives them no other way to judge value. In this episode, Dawn Gribble breaks down the behavioural economics behind guest decisions, detailing how to frame choices, eliminate knee-jerk discounting, and protect direct margins before service begins.
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📌 The Psychology of Decision Making
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In an article for Hospitality Net, Dr Rocio Montero argued that hotel revenue management has become data-rich but “psychology-poor.” Modern pricing algorithms drive aggressive rate fluctuations, yet operators routinely overlook fundamental behavioural economics—specifically
