Last year, during Vibrant Gujarat Global Summit which is a global investor event, my cousin called me to help him with booking a hotel for him . Me being part of the industry, he was obviously looking for discounted rate, only to find out the hotels were not even selling at their highest BAR but the room rates were way beyond reach.

A hotel with a regular average rate of ₹10,000 is now selling at ₹55,000 during "Vibrant Gujarat".

Yes, this hotel was part of a well know international brand.

I wonder, Is this smart revenue management or just a short-term money grab?

Can we say, It's the kind of pricing that fills rooms, grabs headlines, and gives everyone a momentary high?

But once the crowds disappear, what's left?

A boost in top-line revenue or long-term damage to guest trust, reviews, and loyalty?

Let's break down, what this could mean:

A) Short-term tactics can be tempting. But they come with consequences:

• Price shock leads to guest dissatisfaction.
• One-star reviews damage reputation.
• Loyal customers go silent or worse, go elsewhere.
• Direct bookings shrink.

B) Long-term strategy, on the other hand, looks like this:

• Proactive rate planning aligned with market intelligence.
• Tiered pricing with differentiated value.
• Packages and inclusions that justify higher rates.
• Guest communication that's clear and consistent.
• Balancing revenue with brand equity.

But what about the brands?

In many cases, these are franchised hotels operating under a brand flag. And that opens a tricky question:

What is the brand's role in overseeing such pricing behavior?

Here's the reality

• Brands offer pricing guidelines, not policing. Franchisees have flexibility but they should feel the responsibility too.
• Too much short-term pricing distortion can hurt the brand's reputation. And the brand loses credibility with repeat and loyal customers.
• Brand systems (CRS, RMS, loyalty platforms) are designed to encourage strategic decisions. But when those are overridden or bypassed, the long-term impact is not just on that hotel but shared through the chain.

In short The brand can't manage what it doesn't control. But it must protect the integrity of its name, especially during demand spikes.

“Today's rates may boost numbers. But tomorrow's trust builds business.”

Here is a short checklist of question for Revenue Decision-Makers, that they should ask themselves before pricing, during high demand times

• Am I pricing for loyalty or just demand?
• Does this rate reflect value or just scarcity?
• Is my brand aligned with this pricing move?
• Will this strategy harm or help future business?

Have you seen short-term pricing go too far? Or seen a brand take action to protect long-term value?

Share your thoughts!