Effective discounting in the hospitality industry

Strategies for ensuring that hotel discounts continue to be beneficial and profitable

By providing well-designed and targeted discounts, hotels can attract new consumers, retain current ones, and increase revenue. Nonetheless, it is essential to carefully analyze costs, consider target markets, effectively communicate discounts, establish clear terms and conditions, and routinely evaluate their effectiveness.

Key takeaways

• Time-based discounts are used to optimize occupancy and revenue for specific time periods;
• Volume-based discounts are offered because they assist hotels in increasing their occupancy rates, which in turn drives up rates closer to the end of the booking window;
• Value-added discounts are used to encourage upselling and cross-selling across products and to increase consumer satisfaction;
• Targeted discounts are created for a particular consumer segment in order to encourage bookings and influence booking behaviors.

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