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Hoteliers becoming 'wary of discounting'

By Tom Anstey    25 Oct 2013
Hotel customers are becoming more price-conscious and more savvy in finding a deal

A survey of European hoteliers has suggested that hotels are becoming wary of discounting and frequent sales as they evaluate the long-term effects on brand perception.

The survey, which included 75 hoteliers who manage over 13,000 hotel rooms in 45 countries, conducted by Hotwire.com suggests that 75 per cent of hoteliers said that discounting is having a negative impact on their brand. Following the recession, hotels responded with discounts and sales. Hotwire’s ‘Britain on Sale’ report released earlier this year said that more than half of today’s consumers never or rarely pay full price when they shop, which hoteliers believe has ahd a knock on effect with some worrying that they’ve ‘gone too far.’

“Hoteliers are concerned that if their brand is seen as ‘always on sale’, it will be devalued and end up going the way of other companies and industries where consumers are never prepared to pay a premium,” said Hotwire’s Michelle Rosinsky. “We’re not expecting that hoteliers will suddenly give up on discounting, because it is still an effective way to increase occupancy; however, we believe they’ll become more selective about the channels they use, the value of discounts and the timing of their offers. Discounting will become more last-minute and increasingly they will utilise opaque sites and mobile.”

Hotwire says that hoteliers are dealing with a new type of customer: one that’s less loyal, more price-conscious and more savvy in finding a deal. It’s a consumer that rarely pays a full price. According to the survey nearly a third 30 per cent of travellers say they never or rarely buy a hotel room that hasn’t been discounted.

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