"The Wisdom of the Crowds" - Mykonos 2025 | 5-Star vs 4-Star Market

by Victor Matsas • 28 Dec 2024

Location: Greece, Mykonos

The chart below shows us the current availability of all 5-star and 4-star hotels in Mykonos in accordance with their weighted average (WA) prices for the next season. The data has been pulled from market research done by Hotel Insider on Booking's website.

We observe that the availability of 5-star hotels is numerically higher than that of 4-star hotels (expected since Mykonos is a luxury destination).

The interesting fact, however, arises from the observation of the WAs of each category.

We are surprised to see that the weighted average of 5-star hotels on this island of Cyclades peaks around July 4th (date of celebration of Independence Day for Americans), while the corresponding average of 4-stars peaks 45 days later (August 15th)!

In our view, the phenomenon can have two interpretations:
Either
(a) One of the 2 has misjudged the situation - an interpretation that has little chance
or
(b) These 2 categories - in addition to price - are addressed to different audiences (market). The island's 5-star hotels mostly have visitors from across the Atlantic, who choose July as their preferred holiday month, while their 4-star siblings rely mainly on European travelers who travel for their summer holidays – mostly – in August.

Unlike other systems based on fragmentary data, in Hotel Insider we look to draw conclusions by observing markets from the perspective of the "wisdom of the many".

In the next post we will see some elements that will be useful for those involved in online marketing in hotels.