Okay, so we all love a good deal, right? Getting something cheaper always feels like a win. And hotels and resorts have definitely caught on to this, discounting and offering tons of deals to get people to book.
NB: This is an article from Duetto
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But a lot of hoteliers have gotten stuck in a loop of constantly slashing prices, offering direct channel discounts, OTA promotions, and special rate packages to drive occupancy. The problem is, this can actually hurt your brand, lower rate integrity, and compress margins.
With the advancement of tech, data analytics, and changing consumer behavior, you may not need to lean on aggressive discounts to drive performance. In fact, for if you’re a luxury brand, cutting prices might not even bring in many more bookings. So, what else can you do?
Focus on value-added offers
Well, instead of just discounting prices, you can focus on giving guests more bang for their buck. Especially for luxury and boutique hotels, people are often more interested in getting something extra than just a lower price due to the perception of greater value. Think about it: instead of 15% off, what if you got a free spa treatment, or someone picked you up from the airport, or they set up a local tour for you? That feels way more special, right? The cherry on top is that it preserves your average daily rate (ADR) while elevating the guest experience, satisfaction, and loyalty.
Prioritize direct bookings
Another thing you can do is get people to book directly with you. Instead of putting discounts everywhere, you could create loyalty programs, offer member only rates, and offer bespoke incentives. Tools like personalized email marketing, dynamic content on booking engines, and tailored digital advertising can shift focus from pure rate competitiveness to relationship-building and brand engagement. If you leverage customer data too, you can even offer deals tailored to what each guest actually likes, which means more bookings without having to apply broad, catch-all discounts.
Position your brand well
And let’s not forget about just making your hotel really awesome! If you have a strong brand, a compelling story, and something that makes you stand out from the competition, you might not need to discount at all. For luxury and niche properties, this might mean investing in high-quality content, influencer partnerships, and social media engagement to highlight these, including exclusivity and heritage.
These come together to make your property more desirable which in turn makes guests less price sensitive and more focused on being part of an experience.
