Let’s talk about revenue management. Our job as hoteliers: Fill the house, defend rate, drive revenue. It’s all we care about. It’s all we talk about. And since our goals are tied to these metrics, why would we care about anything else?
NB: This is an article from Tambourine
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So we set rates aligned with our goals and move on. But as the booking window begins to close, we realize – yikes – we haven’t picked up and need to fill rooms. So what do we do? Drop rate.
But what message does this send? As Saul Gonzalez Ayala wisely pointed out in a recent article, this strategy inadvertently “teaches customers to wait.” It creates a trust deficit, punishing loyal guests who booked early and rewarding last-minute bargain hunters.
It’s time we shifted the conversation from our internal metrics to the guest’s perception of value. True value isn’t a number on a spreadsheet; it’s a feeling. It’s the guest knowing they made a smart choice.
What meaningful value looks like
The core principle is simple but powerful: Real value doesn’t have to be expensive for the hotel, but it has to feel meaningful to the guest.
Our industry is saturated with token gestures passed off as “perks.” Consider the difference:
Weak value
A $10 discount on a $300 room. A coupon for 15% off a future stay that will never be used. A $30 credit toward a $180 spa treatment. These offers feel like marketing fluff because they are. They don’t significantly enhance the guest’s experience or their wallet.
Meaningful value
A genuine early-bird offer that provides a substantial discount, like $100 off per night. A spa credit that covers the majority of a massage. A truly compelling non-refundable rate that offers a significant savings to make the commitment worthwhile.
Meaningful value makes the guest feel intelligent and rewarded. It confirms their decision to book with you was the right one, building the kind of trust that last-minute slashing of rates destroys.
