What is the definition of Length of Stay Discounts in the hotel industry?
Also known as Tiered Pricing, it is a price concession system for guests who stay a preselected quantity of days or nights. Length of Stay Discounts are used to hearten guests to book for longer periods of time than originally predictable.
This discount is used by autonomous hotels and chains around the globe and can be generally seen when a low-peak period is right after a high-peak season, in hotels that dedicate yourself to in long term lodging or hotels that want to attract consumers to stay for longer period of time. This plan is also used to stay competitive in the hotel industry amongst price-savvy vacationers. A length of stay concession is generally displayed on a hotels website and used by consumers who book directly. However, there are particular occasions where hotels partner with online booking engine for special span of stay discounts to consumers who book with the online booking engine.
The discount is usually emotionally involved to the rack rate before taxes and extra fees, and will be simulated during each night.