[New Publication] Apostolos Ampountolas Examines Consumer Preferences and Optimal Pricing for Hotel Room Upgrades
Apostolos Ampountolas, Associate Professor at Boston University’s School of Hospitality Administration, has published a new study in Tourism Management examining how tour operators can use hotel room upgrades to enhance the customer experience while increasing ancillary revenue.
Titled “Reinventing the package holiday: Consumer preferences and optimal pricing for hotel room upgrades,” the study analyzes a stated-preference experiment involving 691 UK package holidaymakers. The research examines what drives consumers to purchase room upgrades, how much they are willing to pay, and how tour operators can determine the most effective upgrade price.
The findings show that room facilities and room location are the attributes consumers value most, while hotel location has little measurable influence on upgrade decisions. The study estimates a revenue-maximizing upgrade fee of £33.10 per person, with a predicted uptake rate of 54.1%. The research also identifies distinct consumer segments with different levels of price sensitivity, suggesting opportunities for more targeted and differentiated pricing strategies.
The study offers practical insights for tour operators and hospitality businesses seeking to redesign package holidays, personalize customer choices, and develop more effective ancillary revenue strategies.