The effectiveness of discounting room rates has been a point of great debate in the hotel industry. Our extensive research has both verified and identified times when discounting prices in the hotel industry increases demand to the hotel if not the market and times when it has no effect but to simply lower revenues for all.

These dynamics can be best reflected in an hotelier’s spin on the famous serenity prayer: “Grant me the serenity to accept what (demand) I cannot change; the courage to change what (rates) I can; and the wisdom to know the difference.”