Jim Muir, commercial director at BWH Hotels GB, says that it is time for hoteliers to treat discounting as a strategic tool rather than a reactive fix.
Q1 is often the time when businesses, particularly in hospitality, need to discount. Far from being a sign of weakness – discounting can be a powerful weapon in the armoury of an independent hotelier.
When discounts are planned, targeted and supported by robust customer data, they can stimulate incremental demand, build future business and protect long-term value.
The problem with reactive discounting is that it is frequently scattergun. Cutting rates at the last minute rarely creates meaningful new demand and can simply displace bookings that would have arrived anyway. It also risks training customers to wait for lower prices and can undermine confidence in a hotel’s pricing strategy.
A more effective approach is to embed discounting within wider revenue management and marketing plans, identifying in advance where support will be needed and designing offers that are purposeful and time bound.
As hoteliers predict a flat Q1 in 2026 – both in terms of occupancy and ADR – they can look at examples in the sector for inspiration on how best to utilise discounts effectively. BWH Hotels GB’s Black Friday campaign generated more than £1 million in bookings in only four days and delivered the strongest-ever trading day on bestwestern.co.uk. Also, importantly, more than 60 per cent of those bookings came from new customers, demonstrating that short, tightly controlled offers can drive genuinely incremental demand rather than cannibalising existing business.
The promotion was targeted at new audiences, supported by significant digital marketing investment and underpinned by detailed data analysis. Hotels retained control through blackout dates, limits on discounted room volumes and the option to opt out if support was not required. This kind of discipline is crucial.
Discounts are most powerful when they are aligned to specific customer groups and delivered as campaigns rather than simple rate cuts. Structuring offers in this way allows hoteliers to control demand, protect peak periods and focus incentives on the dates and segments that need them most. Blackout dates and closed rate plans remain important tools, but so too does the willingness to speculate to accumulate, using insight from previous years and current booking trends to make informed decisions.
There is clear value in planning discount “moments” well in advance. Flash sales around key retail periods such as Valentine’s Day, Easter or Black Friday can create urgency and deliver longer booking lead times, helping to build base business earlier.
Incentives for quieter periods, such as Sunday nights or longer stays, can stimulate demand without eroding core rates and this is where packages come into their own. Rather than relying solely on headline price reductions, bundling accommodation with curated experiences allows hoteliers to add value while protecting rates.
Packages can convert latent interest into bookings by giving customers a clear reason to commit, whether that is a spa treatment, a dining experience or access to a local attraction. Importantly, they also tend to encourage longer stays, increasing total spend per booking and improving overall yield.
Well-designed packages function as a form of strategic discounting without conditioning customers to expect cheaper rooms. They elevate the guest experience, differentiate the offer and help hotels stand out beyond price alone. Like promotional rates, package bookings often come with longer lead times and tighter terms, improving revenue certainty at a time when flexible rates can see cancellation levels of 20 per cent or more.
Hoteliers must also remain mindful of compliance. Advertising Standards require that if a specific price point is promoted, there must be reasonable availability at that price across the stay dates advertised. Recent rulings against major hotel brands underline the risks of price-led advertising. Percentage discounts or value-added incentives can often be clearer and safer, while still offering strong appeal. For more advice, click here.
Revenue, distribution and marketing teams should work together to design promotions that reflect the unique needs of each property. When these teams align, discounting can be used strategically to support sustainable growth – rather than creating short-term spikes that risk long-term value.
