The Importance Of Offering Hotel Discounts

By Tammie Caldwell


Before reaching the consumer a good or services has to go through a series of organizations, individuals, information and resources that transform it from raw product to actual consumer goods or services. Any reduction in the set basic price at any stage of this transition is called a discount. In a hotel setting there are both goods and services offered and this means that like any other business, hotel discounts are bound to happen.

It is simply defined as an establishment that offers lodging, guest services and food commercially to its customers. According to the set standards for such an establishment to be legally considered as a hotel it should have at least six bedrooms and half of this should be en suit that is with private bathroom facilities. It should also have a restaurant where the occupants of these rooms can get food. And according to this you can see that it offers both goods and services.

It can offer discounts for any number of reasons, this is because it offers both goods and services and they have a different impact to the consumer. One of these reasons is to clear out of date stock. Since a hotel sells food to people, they buy most of the ingredients in bulk and at one point the things in the store might go bad. To avoid this, the management issues a discount. This will channel in more traffic and thus the stock will be cleared instead of incurring heavy losses.

A hotel may offer a discount to launch a new product they have. This will make it more appealing to try out. While doing this they can collect important data about the product and learn how they can improve it. They can also learn if their customers are ready for the new product or not even before going all in.

In every business there are the major customers, this people either make high number of purchases or bring in more profits or they have been with the business since it started. This people are considered to be valuable to the business. In hotels the case is the same and there are discounts made specifically for this people as rewards for their loyalty.

In a new environment a business does not have any customers. There are competitors who have been there for a longer time and have all the customers. The best thing to do as hotel management is to offer discounts on goods and services. This will see people come in since it is cheaper. You will then come up with ways to keep these customers once you have lured them in.

New leadership taking up the management of the hotel can be a reason to offer a discount. This shows the customers that you as the management are willing to change things around. Especially if the outgoing management was incompetent. Offering a discount helps you start over and even make new customers.

In the festive seasons, the hospitality industry is usually blooming since every human being wants to go for holiday. The competition becomes very steep and hotels have to come up with well thought through discounts to be able to have a share of this pie. Discounts in business have always been there and they will continue becoming popular this is because human beings are easily swayed towards the cheap.




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