"Effect of the World’s Best Hotel Awards on Pricing and Visitor Anticipations"

“Effect of the World’s Best Hotel Awards on Pricing and Visitor Anticipations”

Effect of the World’s Best Hotel Awards on Pricing and Visitor Anticipations
I recently finished a journey to Japan, during which I resided at Patina Osaka, recently recognized as the top hotel globally by Travel + Leisure. It achieved a flawless score of 100 (and just to clarify, these ratings utilize decimals, so it wasn’t 99.XX, but strictly 100.00). I’ll be evaluating this establishment soon, but prior to that, I would like to explore the subject of hotel accolades and guest expectations in a broader sense.

Clearly, we find ourselves in the height of the recommendation culture, especially within travel. There exists a significant cycle (forgive my language) between hotels and media outlets — hotels are eager to receive accolades, while publications and other entities like to have their names promoted at no cost for providing specific rankings. Considering how many individuals acquire information these days (via short-form videos, where “world’s best hotel” certainly garners attention), it serves as an excellent marketing strategy.

While “The World’s 50 Best” hotel rankings may be the most eagerly anticipated by the industry, Travel + Leisure also holds considerable influence (for reference, “The World’s 50 Best Hotels” list positioned Patina Osaka at number 33). Therefore, I’d like to touch on that briefly, including the psychology of how these rankings affect consumers… or at least myself!

Holding the title of one of the world’s best hotels is beneficial for pricing

Hotels, naturally, relish winning awards that categorize them among the top hotels globally. It doesn’t take an economist to understand why:

– The average individual actually gives importance to these rankings.
– It significantly boosts demand for reservations at the property, because who wouldn’t opt for one of the best hotels in the world if it fits their budget?
– This heightened demand also enables hotels to raise their prices, as per the principles of supply and demand.

So indeed, these accolades are the most advantageous occurrence for a hotel’s business (the earlier mention of “great” pertains to how hotels ought to feel, rather than how guests ought to feel).

Being one of the world’s best hotels can lead to heightened expectations

To be candid, without revealing too much. I’ve previously reviewed the Waldorf Astoria Osaka, and enjoyed a superb stay. Following that, I headed directly to the Patina Osaka.

I anticipated I would leave with an even better perception, as this is the world’s best hotel according to Travel + Leisure, while it is the 33rd best according to “The World’s 50 Best” hotel rankings. The Waldorf Astoria Osaka, on the other hand, does not figure on either list.

The Patina Osaka was outstanding, don’t misunderstand me. I thoroughly enjoyed my experience. However, it did have a few minor drawbacks, and I couldn’t shake off a slight sense of disappointment. Ford (who wasn’t accompanying me) was eager to learn about my stay at Patina Osaka, and when he texted to ask how it was, I replied that it was “pretty good.”

Now, that might be unjust, as it’s a fantastic hotel. However, I also believe it serves as a valuable reminder of how the perception of a hotel (or any experience, generally) boils down to the reality of our experience versus the expectations we held.

Thus, when a hotel rating leads you to believe that you are about to enjoy the most extraordinary hospitality experience of your life, and then it turns out to be “just” very good, it’s hard not to feel a twinge of disappointment.

Over the years, I’ve spoken with some hoteliers at properties that have garnered similar high ratings, and they too have shared this perspective — it’s wonderful for business, but it complicates matters for staff. As you might expect, people assume everything will be flawless, and that the hotel won’t deny any requests, because after all, this is the best in the world.

The irony is that many of the hotels receiving these accolades have a substantial number of rooms, and those are certainly not my preferred types of hotels. But that highlights how these ratings are frequently allocated — whether by an expert panel or public voting, hotels with larger room capacities are far more likely to host guests who can contribute to these ratings, unlike a smaller hotel with only a handful of rooms.

Of course, I should be aware of this as much as anyone, and I shouldn’t allow my expectations to be swayed in this manner. One truly has to regard these rankings more as a compilation of respectable luxury hotels, rather than viewing them as an infallible guide that must be adhered to.

I mean, in the airline sector, it’s akin to Hainan Airlines, Korean Air, and Asiana Airlines being recognized as Skytrax 5-star airlines, while some other exceptional airlines do not make the list. But yes, I think we…