The hotel industry is transforming — and it’s more than just offering nicer pillows and smart room upgrades. Recent coverage suggests that major hotel players are leveraging advanced technologies, including AI, to adopt airline‑style a la carte pricing models, offering guests the flexibility to tailor their experience and pay only for what they value.
With this new mindset, hotels sell more than just rooms, offering individualized experiences with upgrades that can be added the way you’d add-on a bag to a flight or upgrade your seat to a better class. Daniel Burrus, Technology Futurist, Business Strategist, and AI Advisor, shares how AI is bringing airline-style pricing to hotels and what this might mean for travelers.
How AI-driven, dynamic, and a la carte pricing models work
“The increasing use of AI-driven, a la carte pricing is a hard trend (future certainty) that is transforming the hotel industry. This trend is similar to the revenue model used by airlines. Just as passengers pay separately for seat selection, baggage, and early boarding, hotels are beginning to unbundle traditional room rates to allow guests to personalize their stay,” says Burrus. “They can select from and pay for the services and amenities they value. Consider things like early check-ins, gym access, or upgraded views.”
According to Burrus, this marks a powerful shift as AI enables hotels to easily analyze guest behavior analytics that include preferences and real-time demand so they can offer guest-tailored options at attractive price points.
This isn’t about charging more; it’s about offering more options that are valued differently by each guest. The result is a personalized experience that drives both guest satisfaction and revenue growth. In a world where travelers increasingly expect tailored experiences, this model will allow hotels to pre-solve customer needs and shift from reactive pricing to anticipatory engagement. Like airlines, the hospitality industry is now positioned to turn data into intelligence, not by guessing what guests want, but by knowing it in advance,” Borrus shares.
What airline-style pricing looks like for hotel guests
For hotel guests, the concept of “airline-style” pricing may mean greater control, flexibility, and personalization of your data — all driven by data. “Airline travelers expect and know they can customize their journey by selecting seats, meals, and baggage options. Hotel guests are being offered similar options to shape their stay. Instead of a flat room rate, guests can expect to see a base price with the ability to add early check-in, late check-out, upgraded amenities, premium views, wellness services, and more. These will all be presented in real time, based on their preferences,” he shares.
In addition, AI will also be used to analyze guest history, booking behaviors, and current demand signals to match what a traveler is most likely to value. “For each hotel guest, it’s a tailored experience; for the hotel, it’s an anticipatory business model that boosts loyalty and revenue while delivering a more meaningful stay. In essence, it’s no longer about buying a room, it’s about designing an experience.”
Benefits and drawbacks
Amanda Teague / The Manual
For guests, Burrus says the greatest benefit of this model is control. “Travelers now can personalize their stay, selecting only the services they want or need, with the potential option to save money by opting out of what options they don’t need. This creates a better experience and reflects a broader hard trend: the rising demand for hyper-personalized, data-driven service.”
On the flip side, using an airline-style pricing model can also come with potential drawbacks. Perhaps the most obvious of which is decision fatigue. “If this strategy is not implemented thoughtfully, guests could feel overwhelmed during the booking process, with too many decisions to make. The opportunity lies in using AI not to add complexity, but to simplify. Using it to come up with options based on known user preferences. When this is done well, this model doesn’t just empower a guest, it anticipates their needs and reduces potential friction before it appears,” Burrus shares.
The guest experience
“The shift from pre-set packages to build-your-own stays is fundamentally changing the idea of travel. Guests are no longer passive consumers; they’ve become co-designers of their experience. With AI curating personalized options, the stay goes from a static transaction to a dynamic collaboration,” shares Burrus.
Overall, this new pricing model allows guests to tailor experiences to their likes and dislikes, increasing perceived value and overall satisfaction. Burrus warns, however, that hotels must proceed with caution as “There’s a line between personalization and overwhelm. If hotels present too many fees without a clear benefit, guests will start to feel “nickel-and-dimed and dimed.”
“The idea is using AI behavior analytics and personality profiles to offer fewer, smarter choices that align with individual interests. When hotels can anticipate needs instead of presenting options, guests feel understood and valued — not upsold.” Burrus believes most travelers will embrace this model only if it is delivered with clarity, consistency, and choice.