Hotel Revenue Glossary · Demand

Price Sensitivity

The degree to which a guest segment's booking behavior changes based on room rate. Price-sensitive segments shop aggressively for the lowest rate, while price-insensitive segments prioritize location, brand, or service quality over cost.

Why it matters: Estimate price response from comparable property cohorts by purpose, date, product, terms, channel, lead time, and alternatives. Corporate and OTA labels do not establish low or high sensitivity.

All glossary terms Demand Elasticity Market Segment Rate Fence