What is the meaning / definition of Length of Discounts in the hospitality industry?

Also known as Tiered Pricing, it is a price discount system for guests who a preselected amount of days or nights. Length of Stay Discounts are used to encourage guests to book for longer periods of time than originally anticipated.

This discount is used by independent and chains around the world and can be commonly seen when a low-peak season is right after a high-peak season, in hotels that specialise in long term accommodation or hotels that want to entice customers to for longer period of time. This strategy is also used to stay competitive in the hotel industry among price-savvy vacationers. A length of stay discount is commonly displayed on a hotels website and used by customers who book directly. However, there are special occasions where hotels partner with engine for special length of discounts to customers who book with the online engine.

The discount is usually attached to the rack rate before taxes and extra fees, and will be replicated during each night. For example, if a hotel offers a 4 day at a 15% discount, the discount will be 15% off per each night not in total.

See also:

  • Dynamic Rates
  • Rate Integrity
  • Average Length of

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