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Reasons Why It Is Necessary To Have Hotel Discounts

By Tammie Caldwell


In the basic life cycle of a product or service there a system of organizations, persons, activities, information and resources that takes part in the transition of a product or service from the supplier to the consumer. A discount is a reduction in the basic price of a product or service. It is an establishment offers both goods and services this means hotel discounts are a popular thing.

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.

A hotel, offering both goods and services may offer price reductions for various reasons. One of the reasons is to clear out of date stock. This is because the hotels purchase most products in high amounts, they might go bad and this is not good for business, for this reason they can offer a discount which will cause an increase in the number of people coming in the hotel. By doing this they avoid losses and make a large number of sales.

A hotel may offer a discount to launch a new product they have. This will make it more appealing to try out. While doing this they can collect important data about the product and learn how they can improve it. They can also learn if their customers are ready for the new product or not even before going all in.

The management may offer price cuts to reward valuable customers. These are the people who matter the most to the business and special discounts can be tailored to meet their needs. They do this in a bid to keep this valuable people on board. The idea is if they are treated well there they will not have to look for somewhere else to spend their money.

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 new management is taking over. They will be inclined to show the customers that they are going to bring changes and maybe increase the quality of services. They might offer a discount to mark a new beginning, bring in more customers and hopefully keep them.

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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