Chasing Short-Term Sales Through Discounts

By Charles Tan

Chasing Short-Term Sales Through Discounts

Many hotels treat discounting as the first solution to every sales problem.

Rooms aren’t filling — discount.
Demand slows — discount.
Competitors drop prices — follow.

Yes, rooms fill faster.
But behind the numbers:

  • Profit disappears
  • Brand value erodes
  • Guests book for price, not preference
  • Quality guests don’t return without a deal

When a hotel trains the market to
“wait for the promotion,”
the regular rate becomes a price no one wants to pay.

Discounting is not a strategy.
It is a painkiller —
effective short term, damaging long term.

🔥 One-Line Executive Summary

Discounts may fill rooms today,
but they weaken the hotel tomorrow.

 

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