Feeder markets’ influence on hotel prices: an interview with Pontus Berner

An interview with Pontus Berner, Co-Founder & Managing Partner from berner+becker revenue management

What impact does it have on a hotel’s pricing strategy depending on which countries the guests come from?
First, understanding your feeder markets—where your guests are coming from—is essential for effective marketing and distribution. Hotels need to know the share of visitors from each country arriving at their destination and make sure they’re getting their fair portion of that demand. If not, there may be an untapped opportunity.

The impact on pricing is more indirect. Think of demand as a pot: the larger the pot, the more selectively you can choose your business—and charge higher rates. So, the better a hotel is at attracting guests from a broad range of countries, the more total demand it generates. That, in turn, allows the hotel to raise prices and focus on higher-paying customers.

It’s also important to consider guest segments. For example, some Far Eastern markets often bring group leisure tourists, who tend to be more price-sensitive. On the other hand, some European or North American markets may bring individual business travellers with higher willingness to pay. Hotels can use this insight to shape their strategy, deciding which segments to prioritise—which ultimately links the guest’s country of origin to pricing decisions.

Which source markets are the most attractive from a pricing perspective?
As hinted earlier, it’s less about the country and more about the segment or type of traveller. Every country has both high- and low-spending travellers, though some countries may send proportionally more high-value guests than others. In general, demographic and behavioural factors matter more than nationality.

That said, if you want to generalize, a guest from Switzerland may be more likely to pay higher rates than one from certain Asian markets. But my main advice is to focus on attracting the right type of guest rather than targeting nationalities. That’s where marketing efforts will have the most impact.

In which countries are hoteliers most successful at attracting an international audience?
This largely depends on the attractiveness of the destination, especially at the city level. International demand is typically driven by leisure attractions—like Disneyland—or business magnets, such as trade fairs or major corporate hubs like Silicon Valley.

Cities that combine both, like New York, tend to perform best. They attract both business and leisure travellers, keeping occupancy and rates strong throughout the week. In Germany, Berlin is a good example of this, while Hannover is more business-focused and experiences dips on weekends.

City and regional tourism boards play a key role here through effective destination marketing and branding. Dubai is a standout example, having positioned itself strongly to international audiences. I always recommend that hoteliers use publicly available data—such as tourism board statistics or airport arrivals—to understand where opportunities lie.