In my opinion, it depends on what type of hotel you run or manage. If you are a 1 or 2 star hotels, you can afford to bargain your rooms or meals to attract people during the low period. It will drive more revenue and it may turn 1 time guests into loyal guests after that experience. People going to that kind of economic hotels are more likely to use coupons and discounts so offering great discounts will not seem ackward or devalue your product. Anyway, these people will probably continue going to hotels of your standard.
The problem is different for 3, 4 and 5 star hotels. Contrary to the hotels mentioned above, guests going to these hotels have a higher purchasing power. If you bargain your prices too low, you may attract a clientele you did not target and you may devalue your products in the eyes of your current or potential customers. Below are the reasons why I believe upscale and luxury hotels should not use the Groupon and Google offer sites:
- Devaluation of your products and services in the eyes of the consumers
- Attract a segment of clientele you did not want for your hotel
- Offering a discount does not mean that next time, the guests will be willing to buy your products at full price
- Blur your brand positionning and in a world of brand reputation, image deficit is a killer
- It is very easy to discount and lower prices but it is very hard to re-set up origianl prices.
If you have an other opinion, I would be happy to hear your points!
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