What is the meaning/definition of Early Bird Discount in the hospitality industry?
Hotels can increase advanced bookings by offering something called an Early Bird Discount. This is a type of promotion that many hotels across the world use to increase revenue.
It is important for a hotel revenue management team to strictly control Early Bird Discount promotions, however, to make sure that only the guests who definitely qualify for the special rate receive it. One way to do this is to offer an Early Bird Discount as a non-refundable rate.
Usually you can only have the special rate under Early Bird Discount if your lead time from the reservation until your actual arrival at the hotel is from 1 week to a month apart.
Early-bird offers are good ideas especially when you have a product or service that is seasonal in nature, you can often increase profits during the slow time by offering discounted rates for a limited time period.
- Rack Rate
- Dynamic Pricing
- CEarly bird discount