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Reasons Why It Is Necessary To Have Hotel Discounts

By Tammie Caldwell


For any raw product to reach the consumer be it a good or a service, it has to undergo a sequence of steps involving people, organizations, resources and information exchange. These steps contribute directly to the quality and the impact of the good or service. At each step money changes hands, a reduction in the set price at any stage is known as a discount. In hotels we focus on the final stage where the consumer is the recipient and even here hotel discounts happen.

An establishment offering lodging, guest services and meals is referred to as a hotel, but to fully attain this name, the establishment in question must contain a minimum of six letting bedrooms. At least half of this should come with private bathroom facilities. It should also have a restaurant section for food and this automatically is accompanied by a kitchen. For this reason the industry offers both goods and services directly to the consumer.

It can offer discounts for any number of reasons, this is because it offers both goods and services and they have a different impact to the consumer. One of these reasons is to clear out of date stock. Since a hotel sells food to people, they buy most of the ingredients in bulk and at one point the things in the store might go bad. To avoid this, the management issues a discount. This will channel in more traffic and thus the stock will be cleared instead of incurring heavy losses.

After launching a new product, be it a meal or a service, a it may impose a discount to promote it. This will help gain feedback from the customers about their take on the product. It also helps market the product since many people will try it, this same people will talk about it.

They may want to reward their valuable customers, remember that this are people who mean most to the establishment the management would not like to lose this group of people. They contribute directly to the returns made by the hotel. This discounts come in different ways, they may even be tailored to suit this group of people specifically.

A new establishment wants to make new customers fast. They offer discounts on products to lure them into their circle. This is because people will run towards the cheaper option. The management then decides what kind of discount will be imposed and the duration it will span. This tactic allows the business to thrive in a new environment.

When introducing a new management, a hotel might offer a price cut to their customers to mark this transition. It is a sign of good faith from the incoming management and they do this to give themselves a head start and gauge their ability to maintain customers.

In the festive seasons, the hospitality industry is usually blooming since every human being wants to go for holiday. The competition becomes very steep and hotels have to come up with well thought through discounts to be able to have a share of this pie. Discounts in business have always been there and they will continue becoming popular this is because human beings are easily swayed towards the cheap.




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