Why should hotels offer discounts instead of always pricing at rack or BAR?

Discounts allow hotels to fill unsold inventory during low demand periods. When done strategically, they can drive incremental bookings without eroding full-rate business.

What types of discount strategies are common in hotels?

Early-bird / advance booking discounts, Last-minute / flash deals, Package bundling (e.g. room + breakfast + spa), Corporate / negotiated rates, Loyalty/ membership discounts, Seasonal or promotional discounts, Length-of-stay (LOS) discounts.

What hotel discount levels are safe to offer without harming profitability?

Many experts suggest not exceeding 10-25 % off BAR in promotions unless demand is very weak. Always run margin and break-even analyses first.

What future trends are shaping hotel discounting strategies?

Trends include dynamic pricing with AI, personalized discount offers, real-time micro-promotions, package-based discounting, and value-add offers over pure percent discounts.

Home BlogHotel Discount Strategies: Maximizing Revenue Through Smart Pricing

Hotel Discount Strategies: Maximizing Revenue Through Smart Pricing

Oct 15, 2025

Mika Takahashi