Published: December 4, 2025 | Reading Time: 6 minutes | Category: Travel Industry Trends & Fixed Pricing
SiteMinder just released their Changing Traveller Report 2026, surveying 12,000 travelers across 14 countries about their accommodation preferences. One finding stands out: 65% of travelers now accept that hotels should charge more during popular periods.
Dynamic pricing. Surge pricing. Peak-demand optimization. Revenue management. Whatever you call it, the message is clear: the travel industry has successfully conditioned customers to expect fluctuating prices based on demand.
Hotels are charging you more for Christmas week. Airlines charge you more for school holidays. Rideshare apps charge you more on Friday nights.
At Cars on Demand, we think airport transfers and corporate chauffeur service should work differently.
What the SiteMinder Survey Actually Shows
65% of travelers believe hotels should charge more during popular periods. This acceptance is growing year-over-year. The hospitality industry has successfully normalized surge pricing as “dynamic revenue management.” But acceptance doesn’t mean travelers like it. It means they’ve resigned themselves to it.
Why Hotels Justify Surge Pricing
The hotel industry’s argument for dynamic pricing makes sense on paper:
- Limited inventory: Hotels have a fixed number of rooms. Once they’re full, they’re full.
- Perishable product: An empty room tonight can’t be sold tomorrow. The revenue opportunity is lost forever.
- High fixed costs: Whether the hotel is 50% full or 100% full, the building costs, staff, and utilities remain largely the same.
- Demand fluctuation: A hotel might be empty on Tuesday and fully booked on Saturday. Pricing adjusts to optimize revenue across the week.
These are legitimate business considerations. Hotels have real capacity constraints that justify variable pricing.
But here’s the question nobody asks: Do these same constraints apply to professional ground transport?
Why Airport Transfers Shouldn’t Work Like Hotels
Professional airport transfers operate under fundamentally different constraints than hotels:
1. Scalable Capacity
Hotels can’t add rooms on busy weekends. But a professional chauffeur service can deploy additional vehicles and drivers during peak periods. We’re not constrained by fixed inventory the way hotels are.
2. Predictable Operating Costs
A Sydney Airport to CBD transfer costs the same to operate on Monday morning as it does on Friday night. Same fuel. Same distance. Same driver time. Same vehicle wear. Why should the customer pay more just because it’s a busy period?
3. Not a Perishable Product
An empty hotel room tonight is lost revenue. But a chauffeur who isn’t booked at 7 PM can still take a 9 PM booking. Our service window is continuous, not event-based.
4. Professional Service vs. Gig Economy
Rideshare apps use surge pricing because they rely on gig workers who can choose when to drive. Higher prices incentivize more drivers to come online during busy periods. Professional chauffeur services don’t work this way. We employ professional drivers on schedules. We don’t need surge pricing to ensure availability.
The Overtourism Tax: Are Travelers Really Willing to Pay?
SiteMinder’s survey also asked about overtourism surcharges. The results reveal customer ambivalence:
- 42% willing to pay more to reduce overtourism
- 34% refuse to pay more
- 24% conditional on destination
Translation: Most travelers will accept higher prices if there’s a justification, but a significant portion resent being charged extra simply because demand exists.
The Real Cost of Surge Pricing: Eroded Trust
Here’s what the hospitality industry doesn’t talk about when they celebrate their “dynamic revenue management” success:
Surge pricing erodes customer trust.
When a customer books a hotel room for $200 on Tuesday and sees the same room listed at $450 on Friday, what message does that send?
- “We charge what the market will bear, not what the service costs”
- “Your loyalty doesn’t matter; we optimize for whoever pays most”
- “We’re happy to price-gouge when we can get away with it”
Is that the relationship you want with service providers?
The Rideshare Problem
Rideshare apps have taken surge pricing to absurd extremes. Friday night in the city? 2.5x surge. Raining? 3x surge. New Year’s Eve? 5x surge or more.
The justification is always the same: “We need to incentivize more drivers to come online during high-demand periods.”
But here’s the result: Customers now view rideshare as unreliable, unpredictable, and exploitative. The platform destroyed trust in exchange for short-term revenue optimization.
🏨 Surge Pricing Model
- Prices change by hour/day/season
- Higher prices during peak demand
- Customer never knows true cost
- Optimizes revenue per transaction
- Erodes customer trust over time
🚗 Fixed Pricing Model
- Same price, always
- No surprises during busy times
- Customer knows exact cost upfront
- Builds long-term relationships
- Creates trust and reliability
Why We Choose Fixed Pricing at Cars on Demand
We’ve been operating professional airport transfers and corporate chauffeur service across Australia since 1990. For 35 years, we’ve maintained fixed pricing. Not because we’re bad at business, but because we believe trust matters more than revenue optimization.
What Fixed Pricing Actually Means
Sydney Airport to CBD: $95.
That rate applies:
- Monday morning or Friday night
- Christmas Day or a random Tuesday in March
- During a major conference or the quietest week of the year
- When it’s raining or when it’s perfect weather
- Whether you book weeks in advance or need immediate pickup
The service costs us the same to deliver. So we charge you the same. Always.
The Cars on Demand Fixed Pricing Promise
We guarantee the rate you see when you book is the rate you pay. No surge multipliers. No peak-time premiums. No weather-based price increases. No Christmas surcharges. The price is the price. This is how professional service should work.
The Business Case for Fixed Pricing
You might wonder: doesn’t fixed pricing leave money on the table during peak times?
Short answer: Yes. If we charged surge pricing on Friday nights and Christmas week, we’d generate more revenue per trip during those periods.
But here’s what we gain by not doing that:
1. Customer Loyalty
Corporate clients and frequent travelers value predictability. When they know Melbourne Airport transfers always cost $95, they don’t shop around. They don’t compare. They just book. Loyalty eliminates customer acquisition costs.
2. Simplified Operations
Dynamic pricing requires constant monitoring, adjustment, and complex algorithms. Fixed pricing eliminates that overhead. Our operations team focuses on service quality, not revenue optimization calculations.
3. Brand Trust
When customers recommend us, they can say with confidence: “It costs $95, every time.” That simple statement builds trust. Trust converts referrals into bookings.
4. Long-Term Value
A customer who uses our service 20 times per year for airport transfers is worth far more than extracting maximum revenue from a single Christmas booking. We optimize for lifetime value, not transaction optimization.
When Fixed Pricing Actually Saves You More
Here’s a scenario that plays out constantly during peak travel periods:
Friday night, 8 PM, Sydney CBD. You just finished dinner with clients. You need to get home to the Eastern Suburbs.
Rideshare App
Estimated fare: $85-$110
2.3x surge pricing in effect
Wait time: 12–18 minutes
Driver rating: Unknown until they arrive
Final price: You’ll know after the trip
Cars on Demand
Fixed rate: $65
No surge pricing, ever
Professional chauffeur dispatched
Track exact location via app
Final price: Exactly $65, guaranteed
Result: Fixed pricing actually costs you less during the exact times when surge pricing hurts most.
The SiteMinder Report: What It Really Tells Us
SiteMinder’s survey shows that 65% of travelers accept hotel surge pricing. But acceptance isn’t endorsement. Travelers accept surge pricing the way they accept airline baggage fees: reluctantly, resentfully, and only because they have no choice.
The survey also reveals something interesting about the overtourism surcharge question:
- 42% willing to pay more
- 34% refuse
- 24% conditional
That’s a 58% resistance rate (refuse + conditional). More than half of travelers either reject surcharges outright or will only accept them with specific justification.
The message is clear: travelers tolerate surge pricing when they must, but they don’t prefer it.
What This Means for Corporate Travel
If you’re booking airport transfers for executives, clients, or teams, fixed pricing eliminates budget uncertainty:
- Budget planning: You know exactly what transport will cost before you book flights
- Expense management: No explaining surge charges to finance teams
- Fair billing: All employees pay the same rate for the same route
- Reliable forecasting: Next month’s transport budget won’t fluctuate based on demand spikes
For corporate chauffeur service, fixed pricing isn’t just customer-friendly. It’s operationally superior.
Our Rates (Same 365 Days Per Year)
- Sydney Airport to CBD: $95
- Melbourne Airport to CBD: $95
- Brisbane Airport to CBD: $110
- Perth Airport to CBD: $85
- Adelaide Airport to CBD: $75
These rates apply Monday or Friday. January or December. Morning or evening. Rain or shine. Always.
The Choice: Optimization vs. Trust
The travel industry has made its choice: optimize revenue per transaction through dynamic pricing, even if it erodes customer trust.
Hotels justify it with capacity constraints. Airlines justify it with yield management. Rideshare apps justify it with driver incentives.
At Cars on Demand, we’ve made a different choice: We optimize for trust and long-term relationships instead of transaction-by-transaction revenue maximization.
Does this mean we leave some revenue on the table during peak periods? Yes.
Does it mean our customers know exactly what they’ll pay, never face surge surprises, and return to us for 35 years? Also yes.
We’ll take the second option.
Experience Fixed Pricing
Professional airport transfers with guaranteed rates. No surge pricing. No surprises. Just reliable service at the same price, every time.
Sydney | Melbourne | Brisbane | Perth | Adelaide | Canberra | Darwin
📱 Download App: carsondemand.link/register
☎️ 24/7 Support: 1300 638 258
✉️ Email: [email protected]
Fixed rates since 1990. 99.99% on-time reliability. The rate you see is the rate you pay. Always.
The Bottom Line
SiteMinder’s Changing Traveller Report 2026 shows that 65% of travelers accept surge pricing. But acceptance isn’t preference. It’s resignation.
Hotels have legitimate capacity constraints that justify variable pricing. Airport transfers don’t.
We’ve spent 35 years proving that professional ground transport can operate profitably with fixed pricing while building customer loyalty that dynamic pricing could never achieve.
Hotels are surge pricing you. Rideshare apps are surge pricing you. Airlines are surge pricing you.
We’re not.
Sydney Airport to CBD: $95. Monday or Friday. January or December. Morning or evening. Rain or shine.
That’s the rate. Always.
Related Topics: Fixed Rate Airport Transfers | No Surge Pricing | Sydney Airport Transfers | Melbourne Airport Limo | Brisbane Chauffeur Service | Corporate Chauffeur Service | Reliable Pricing
© 2025 Cars on Demand. Fixed pricing since 1990. No surge charges, ever. Professional airport transfers
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