The Different Types of Hotel Discounts
Hotel Discounts are a great way for hotels to entice guests and generate bookings during off-peak seasons and slower days. However, hoteliers need to be strategic in their discount pricing in order to remain competitive and not lose money. By analyzing competitors’ rates and offerings, hoteliers can devise discount pricing that entices guests but maintains profitability. A hotel’s pricing strategy is also impacted by the broader economic climate. In difficult times, discount pricing can act as an incentive for cost-conscious travellers, while in more prosperous times, there may be less of a need for discounts.
The most common type of hotel discount is a room rate reduction. This can be a flat amount discount such as $10 per night or a percentage discount such as 10%. A room rate discount applies to the Best Available Rate, which is the lowest publicly-available rate on your hotel website or through any other online channel (excluding taxes, resort fees, service charges, incidentals, and gratuities).
Another common type of hotel discount is a stay-length discount. This is applied to guests who stay for a certain period of time, usually a week or longer. This can be a great way to attract repeat guests or encourage visitors from a nearby town or city. A stay-length discount can be a flat discount or a percentage discount on the first or last night of the guest’s stay.
A third common type of hotel discount is a VIP or repeat guest discount. This is applied to repeat guests or guests who have referred a friend. This can be a good way to show your appreciation for their loyalty or referral business and encourage them to book with you again.
Some hotels also offer discounted rates for corporate clients. This is typically done for larger companies that frequently travel and require accommodations for employees or guests. Typically, this is a negotiated rate and can be quite lucrative for the hotel as these bookings tend to come with more ancillary revenue streams from things like food, spa, or tours. For more details please visit Hotel Discounts
Finally, some hotels offer discount rates to local residents or a specific group of people who frequent the area, such as students, retirees, or members of a particular club. This can be a great way to boost revenue from these groups and also promote community engagement and awareness for the hotel.
No matter the type of discount your hotel offers, it is important to have a proper and fool-proof cancellation policy in place before offering them to guests. This will help reduce cancellations and refunds, which can ultimately lead to more booked rooms. It is also a good idea to analyze the expense or loss of each discount offer before running it in order to be sure that you are making the right decision for your hotel’s business and budget.
