I respect this hotel company's right to market their product as they see fit and we wish them well with it. This campaign may broaden their market considerably and encourage a few more guests to stay with them that wouldn't have otherwise traveled. It may encourage a few guests to swap loyalties from other accommodation choices, however it may also save their existing client base a considerable sum that would have stayed anyway.
I guess Accor's housekeeping staff will be happy with sustained hours of work and the maintenance staff will also be kept busy after the rigors of "price conscious" travellers that were ensuring that they were getting the full value of a $79 experience.
What will happen at the end of the campaign when the same guest wishes to re-book. What appreciation and value will the public have of paying Accor's "usual tariff" after the campaign period. What expectation of value will the traveling public have of other accommodation options after being exposed to this marketing gimmick?
A kneejerk reaction of some players in accommodation industry that are devoid of innovation is to discount below sustainable levels or to simply market on price.
Motel specialist broker extraordinaire, Kathy Shepherd comments on Occupancy vs Tariff in the current market and it is well worth a read:
Click HERE
