the term "Opaque Model" refers to a pricing strategy used in the hospitality industry where specific details about the hotel, such as its name or exact location, are hidden until after booking. This model is often employed by online travel agencies (OTAs) to offer discounted rates while preserving the hotel's brand integrity. Customers are aware of the general location and amenities but may not know the specific hotel until the reservation is confirmed. Opaque models help hotels fill empty rooms without diluting their brand value or publicly advertising lower rates.
What is an opaque model in hotel booking?
An opaque model is a pricing strategy used by online travel agencies where specific details about the hotel, such as its name or exact location, are hidden until after booking. This allows hotels to offer discounted rates without publicly advertising lower prices.
How does the opaque model work?
In the opaque model, customers are provided with general information about the hotel, such as its amenities and star rating, but the specific hotel name and location are not revealed until after the booking is completed. This allows hotels to fill empty rooms while maintaining their brand integrity and avoiding public price undercutting.