Last Minute Hotel rooms

So why should you not sell peanut rooms with last-minute hotel applications?

The Thanksgiving Day in the USA was packed with events for the hotel and restaurant trade, not least thanks to a special last-minute hotel application. Something that caught my eye was the Black Friday $7 room deal on HotelTonight (my preferred portable trip app). An important factor - no mind who at the end of the day payed how much, or what the resolution of the price quoted actually looked like compared to the amount actually payed by HotelTonight, is the fact that the customer actually spent $7 on those hotel bookings and that is what he will recall.

Generally speaking, reducing the price of your room is not a good option.

However, this super-aggressive depth discount is a whole new terrain. It' not a good place for the sector, especially at a timeframe when hotel and brand names are so keen to redefine their value, thanks to highly succesful tour operators like Airbnb. Regardless of how poor the odds are on the rebate markets, I'm not a big fan of rebates and I never will be.

Of course, the discount will fill your hotel... but at what price? Who' s this guy who checks into your hotel for $7? What's happening to your value perceptions? In fact, you are better off giving away a free room than adding a $7 price to your item. Those who drop installments may give the impression of gaining the cast exchange, but it ends there quite accurately.

GoPar and RevPar favour growing properties that safeguard the value of their products when it comes to long-term viability. In terms of enthusiasm, this was an enormous gain for HotelTonight. Shanks went all the way to CNBC with his stunning "Get your $7 hotel room now!" section. I am sure that HotelTonight has arrived several hundred thousand new folks who now know about its dealsaving, cash efficient and last-minute reservation application.

HotelsTonight has raised wireless usage and distributions to a new standard; none of the incumbent hotel labels such as Marriott, Hilton, Starswood, etc. have even come near the goal. Everyone in the tourist industry is strongly advised to pay attention to how well the HotelTonight application works. Strong discount terms for your hotel customers to validate your hotel products.

This is a graph with the mean prices I found on the web sites of the competing hotel companies (simplest room types, for a one-night visit, December 8, 2015): Significantly reduced room rental also has a detrimental effect on your current market and build activities. As soon as you make known that a room in your finest hotel can be hired for a rock-bottom price of $7, you have established a base expectations that is far too low.

Increasing your percieved value from $7 to your normal interest is a powerful job that you didn't have to do for yourself. As you can cite me, it will take years for your rates to rise and a few moments to break them. In order to make things even more complicated, you are not the only hotel on the city.

What if you offered a little more than a rebate? The addition of something additional will give your buyers the feeling of getting something specific instead of donning good deal chasers; and it won't cost you your would. What about a value-added vacation tariff for your most faithful visitors? Set up a tariff level for them that they can use during vacations and lease seasons at your hotel.

You will be spoiled by getting additional conveniences and you will fill the rooms with clients you like (and the other way round). What about a system of income calculated on the total value of your visitors? However, an argument can be found for providing bonuses and upgrade options for your most profited guest - those who often live with you and/or buy food, drink, spa and more.

Bulk merchandising and discounts are so 2001. Each hotel should work each year on better segmentation using geographic, business and revenue information from its on-line and off-line analysis. Discount is up. Admittedly, it is a zipombie that occasionally comes back to live when hotel proprietors, executives and commercial agents run out of it.

You don't have to be a target for the discount on zombies. I' m hoping next year on Black Friday we won't see any more $7 hotel rooms. Instead, I would welcome it if a hotel could offer its customers high added value during the Christmas period through the use of creativity in public relations, packing and upgrading.