Fully automatic discount system
You should apply the saying: “as many as necessary – as less as possible” for discounts. Specifically, that means: the less is the probability to sell a certain gap, the higher should be the discount.
Particularly two factors are relevant for this “probability”:
1.) How long is the rest of the time available for selling the room?
If there are two months left until check-in, there is no need to offer dumping prices since there still will be several requests of interested guests.
But if the arrival day is within the next three days, then “get going” to sell this room – raise the discount highly to catch at least one bargain hunter. Each contribution margin is welcome, because the hotel’s fixed costs like heating, staff, etc. have already been covered.
What’s my current occupancy for the gap period in the appropriate room category?
If there is available only one room from 100 in total, I do not have to worry – a booking will fall into place.
But if two thirds of all rooms are still available, you have to turn the screws on prices whether you like it or not to avoid having an empty house in the end.
And exactly these two factors can be combined fully automatically by the GASTROdat GapManager once you have adjusted it.