A majority of hotels have said they discount more now than they did five years ago, according to a new survey by online travel agency Hotwire.
The report, which also said that 75% of hoteliers have indicated that they’re worried about the levels of discounting and the effects it’s having on their brand, has suggested that customers now rarely pay full price for a hotel room.
“Hotels understand that when they discount it drives occupancy,” Michelle Rosinsky senior manager at Hotwire.com told Travel Daily UK. “They would prefer not to, but at times they know they need to make money and also stay competitive within the global and local marketplace.
“However, what we’re trying to educate hoteliers about at Hotwire is that a better method is to discount safely and secretly. By using these kind of methods hotels don’t have to publicly lower the cost perception around their property.
She added: “To charge GBP300 when full and GBP100 on a Sunday night is very bad for any brand. A customer will not understand why the same room costs a third of the price on a different night.
“We’re not expecting that hoteliers will suddenly give up on discounting, because it is still an effective way to increase occupancy; however, we believe they’ll become more selective about the channels they use, the value of discounts and the timing of their offers. Discounting will become more last-minute and increasingly they will utilise opaque sites and mobile.”