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26 Feb 2025

Hotels discover the power of customization and technology

Hotels discover the power of customization and technology

Those who book a hotel room increasingly want to have an influence on the experience. This is possible, thanks to technology and customization. Hotels discover how they can make money with this.

Imagine: instead of blindly booking a room, you choose your ideal stay from an interactive 3D map of the hotel. Do you want a room with a view of the skyline? A corner room with extra space? Smart technology allows travelers to fully personalize their stay, while hotels create additional value. What used to be a standard room rate is now becoming a flexible experience where guests pay for specific preferences and extras.

This model is already being implemented by IHG (InterContinental, Holiday Inn), which enables more than 6,000 hotels worldwide to differentiate rooms based on size, views and additional amenities. Guests can add food and beverage credits, lounge access, and other extras to their stay at an additional cost. According to SKIFT Megatrends 2025, this will provide budget hotels with an average of $20 extra per night, and even double that for luxury accommodations (O'Neill, 2024).

This development is also taking place in the Netherlands. For example, boutique hotels can use ExpectMe, a platform that allows guests to select their specific room directly on a floor plan. During the booking process, they can also choose attractive additional options, such as a late check-out or a welcome package.

Not only rooms, but also services are becoming more and more personal. This personalization is not only a service improvement, but also helps hotels offset rising costs and tax burdens. Dutch boutique hotels can respond to this by, for example,  using Runnr.ai,  a platform that sends personalized messages and helps guests optimize their stay in advance.

Higher taxes force hotels to adopt smart pricing strategies

In addition to technology, financial incentives are also an important driver for change. With rising VAT and tourist tax, it becomes necessary for hotels to be more creative with their revenue model. Like aviation, where base prices remain low and extras are charged separately, hotels can apply this model to keep costs manageable for guests who want to keep their hands on the purse strings.

From 2026, the VAT rate on overnight stays will increase from 9 to 21 percent, while municipalities will increase their tourist tax. In Utrecht, this rate even rises to 10 percent of the room rate, while Amsterdam already applies a tourist tax of 12.5 percent. This means higher costs for hotels and their guests.

To partly compensate for these costs, hotels can organize their services in a smarter way. They may offer additional services that are subject to a lower VAT rate. Examples include listing food, non-alcoholic beverages and access to wellness and sports facilities separately on the bill.

Consulting firms such as Simon Kucher and Revenue Guru help hotels determine a smart pricing strategy based on value perception and separately offer services that create additional value.

Guests don't want a standard overnight stay, but a tailor-made experience. Hotels that do this smartly not only earn more, but also create loyal guests.

Want to know more? These and other trends in hotel personalisation and pricing strategies will be discussed during a knowledge session at the Independent Hotel Show. Sign up and discover how customization and technology can make your hotel more profitable!

 

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