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  For many hotel owners and managers, reducing rates is the lazy-man's form of marketing. It’s generally the first thought when sales are low; after-all, it takes very little thought and certainly very little research and/or effort. And, it also ignores the fact that people don’t buy rate, they buy value. Simply lowering rates for everyone ignores the fact that most people are not seeking  hotel rooms based upon rate alone. If that were true, the hotel with the lowest rates would be full all the time.

In a vacuum, rates mean little, but no hotel should operate in a vacuum. Low rates, when compared to your competition set, can also devalue your hotel. “You get what you pay for” is still alive and well; when a product is not known, its price will define its quality.