A Lesson In The Risk Of Discounting | hotelnewsnow.com

HENDERSONVILLE, Tennessee -- During these challenging economic times, it is easy to justify discounting rates to capture as much share as possible in the marketplace. But what are the long-term ramifications of managing for short-term solutions? Here is a specific example of what could happen to a hotel when it starts discounting: Let’s assume that a 117-room, limited-service hotel has had a 69-percent occupancy and US$95 ADR over the past 12...