Discounts are running, promotions are regular, and advertising is active. But why do hotel revenues still feel sluggish and profits never maximized?
In fact, many hotels are trapped in the old strategy: selling cheaply to fill rooms. However, without the right hotel marketing strategy and ecommerce approach, discounts can actually become a source of revenue leakage. ecommerceloka will discuss why hotels that frequently discount are actually failing, and how a healthier strategy, like the one implemented by ecommerceloka, can help hotels escape this trap.
Discounts Aren't the Problem, the Strategy Is Wrong
Discounts aren't actually the enemy. The problem is when discounts are used as a solution for all situations. Many hotels offer discounts without:
- Margin calculation
- Demand analysis
- Clear guest segmentation
As a result, rooms are sold, but revenue doesn't match the operating costs.
Why Do Hotels with Frequent Discounts Still Fail?
1. Discounts Attract Price-Sensitive Guests
Big promotions tend to attract guests who only care about price. This type of guest:
- Rarely repeat bookings
- Minimal upselling
- Complaints more easily
In the long run, this damages the quality of hotel revenue.
2. Margins Deplete Midway
Overly aggressive discounts often fail to take into account:
- OTA commissions
- Taxes and service charges
- Daily operating costs
The end result is that the hotel appears busy, but cash flow remains under pressure.
3. Brand Perception Decreases
Hotels that offer discounts too frequently without a strategy will develop the perception:
"If you wait, it will be cheaper later."
This makes guests reluctant to book at the normal price and simply wait for the next promotion.
4. Marketing Works, Revenue Goes Undirected
Many hotels focus on traffic and impressions, but forget that the primary goal is profit. Without a hotel ecommerce approach, marketing only generates visits, not healthy transactions.
More stable competitor hotels don't stop discounting; they manage discounts intelligently. They use: Dynamic pricing, market segmentation, and exclusive direct booking promotions. This is where the role of a hotel ecommerce system becomes crucial, because all decisions are based on data, not instinct.
The Role of Hotel Ecommerce in Stopping Discount Wars
The concept of hotel ecommerce positions hotels like online stores:
- Flexible prices according to demand
- Different offers for each channel
- Focus on conversion rates, not just traffic
This approach helps hotels increase revenue without having to constantly lower prices.
Hotel Marketing Strategies That Are Healthier Than Just Discounts
Some more sustainable strategies:
- Bundling rooms with experiences
- Limited-time promotions
- Value-added offers, not price cuts
This strategy has been proven to maintain brand value and margins.
How ecommerceloka Helps Hotels Escape the Discount Trap
ecommerceloka helps hotels build a more controlled sales system through:
- Data-driven hotel ecommerce strategies
- Synchronizing marketing and revenue
- Optimizing direct bookings without price wars
The focus is not just on sold rooms, but on healthy and sustainable revenue. If your hotel frequently offers discounts but still suffers losses, the problem likely lies not in the market, but in its strategy. Uncalculated discounts only create false occupancy. It's time to shift to a smarter hotel marketing strategy with a hotel ecommerce approach with ecommerceloka, so that every booking actually generates profit, not just traffic.