Worst Decisions Ever – Eternal Sales

Eternal Sale.

Continuing our ‘worst decisions ever’ blog series, we share another valuable lesson learned by one of our clients… stop depending on the eternal sale to drive volume.

What is the ‘eternal sale’?

The eternal sale is when your hotel ALWAYS has a sale or promotion running, and we’re not talking industry standard promotions such as AAA/AARP (as one example)… we’re talking about sales and promotions that deeply discount your retail rate.  We’re talking about sales and promotions that once cut off, bookings immediately stop (or dramatically slow down).  This strategy might work for other business models, but has no place in your hotel or resort strategy.


Your retail rate strategy is wrong!  If you depend on sales to sell your property, not only are you dependent upon rates well below your published retail rate, but there are additional factors (whether you know it or not) including marketing/advertising expense pushing the sale/promotion, dilution of your brand image and value, education of customers (and potential customers) to simply wait to book until your next sale, and the time you personally invest into promotional setup and management.

Bottom line, you’re creating a lot of extra work for you and your team simply because your rates are wrong.

Do not repeat the worst decisions this client made – your property deserves better.  Studies have shown that it can take years to re-educate consumers on pricing, especially when dramatic reductions are published to chase volume.  We’re not saying sales and promotions are evil… what we are saying is that when sales and promotions run constantly, then effectively you do not have a retail rate. It’s difficult to trump the power of pricing!  Maintaining effective retail rates that position you properly against your competition and drives your business will be a critical part of your future success.

Please feel free to join the discussion by leaving your comments, or contact me directly at askjames@fare11.com. Sign up for a free trial at Fare11.com today, and visit us on Facebook.com/nopricegaps.

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