Okay here is my sentiment and most of you will disagree for some odd reason, and that is okay. It is one of those times the forum is a enigma to rational thinking. LOL
People like saving money. I know that is hard to fathom, but they do! People, all of them, everywhere. People shop sales, don't all of you innkeepers want something on sale versus full price?
People sticker dicker at car dealerships - thus the term to dicker. Yes even the luxury vehicles. Having said that, it is typically the average joe who tips around here and appears to appreciate everything more, not the elite. But the elite are just as apt to want to save a few bucks on their rooms as anyone else..
My 'cash' guy was cheery as could be this AM. Dickering is in his blood, no harm no foul because he didn't get more off. AND, they are coming back in Oct. So, yes, guests like discounts. But, only a few of them have ever specifically mentioned the discount when booking or checking in. But a lot more talk about the mugs they got and how much they like using them and remembering their vacation. Everyone who got a mug also got the discount.
And a lot of guests who have been coming for years have said they would come without the discount. So, maybe those are the converts!
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Bree said:
My 'cash' guy was cheery as could be this AM. Dickering is in his blood, no harm no foul because he didn't get more off. AND, they are coming back in Oct. So, yes, guests like discounts. But, only a few of them have ever specifically mentioned the discount when booking or checking in. But a lot more talk about the mugs they got and how much they like using them and remembering their vacation. Everyone who got a mug also got the discount.
I think that's a good way to do it: discount (small) with tangible gift.
People might like a discount, but it's fleeting, whereas gifts stay with people, reminding them of their vacation.
Gifts also tend to have a higher perceived value than monetary discounts. If a guest gets a $20 discount, the perceived value is usually less than $20 for the simple reason that market value of a commodity is whatever someone is will to pay and someone is willing to sell for. Ie, the rack rate appears inflated.
A guest rarely knows the actual value of a tangible gift, and they perceive the value based on its usefulness and longevity as well as sentimental reasons (a momento of their trip), which is generally higher than the actual cost to the innkeeper.
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