Hotel Coupons: Strategies for Promo Codes and Exclusive Deals

As a hotelier, you spend most of your time coming up with various deals (such as hotel coupons and promo codes)to attract first-time visitors or retain existing guests.

But what would happen if those discount strategies don’t give you much success because youdon’t know your target customers and what offers match their needs.

Read this blog to know how using promo codes and coupons can be a powerful tool for you to increase your bookings by 35%.

What are hotel coupons, promo codes and deals?

Hotel coupons and promo codes are an effective strategy for hoteliers to attract travelers to book a stay at their hotel. This helps them get more direct bookings on their website and through social media. Every hotel follows a different discount strategy for its guests.

Some hoteliers offer fixed percentage discounts on the total value of booking.Others come upwithadditional services or packages such as late-night checkout, free breakfast, or 15% discount on drinks at the bar.

A great time to share promo codes and coupons is when you want to fill last-minute bookings.

By doing so, you bring new visitors to your door, retain existing guests, and get more positive reviews about your hotel. For guests, the value of bookings becomes higher than they expect.

In a nutshell, limited-time promotions tap into both logic and emotion. While guests appreciate the savings, it's the fear of missing out that drives them to book immediately.

Why should hoteliers use coupons, promo codes, and deals?

Modern hoteliers understand that integrating coupons and discounts in their marketing strategy can bring an insane number of bookings and people will convert because their purchase experience becomes more value driven.

Let's break down some of the key reasons as to why implementing hotel coupons and discount strategies can be effective for you.

1. Get last-minute bookings through multi-channel distribution

Coupons act as a magnetic force in selling your remaining inventory and attracting last-minute bookings during the off-peak season. But how do guests know about your latest offers and discounts? That's possible when you adopt a multi-channel coupon strategy.

Promote your offers and discounts across channels such as social media, email, and websites. By sharing these enticing offers with new and old guests, you not just drive more bookings but also increase guest loyalty.

2. Impresses your guests and makes them happier

By offering coupons and discounts, you can make the guests happier than ever. It's a psychological fact that people love spending when they get good deals. People, especially millennials and Gen Z shoppers, love reacting to promotions.

A survey states that every $10 coupon increases oxytocin levels by 38%. As you give more priority to guests, they feel valued and are more likely to share positive reviews about you.

3. Keep your old guests coming back

Another reason for using hotel coupons is to get more returning customers. As the hospitality industry has become more competitive, hoteliers struggle to revive their old guests.

A possible way to increase guest loyalty is through delivering genuine experiences. A research study states that business and leisure travelers are ready to spend more on their stay when they become more loyal to a specific hotel brand.

The best method to stay on the top of your guest's mind is by sending a personalized email containing special offers and asking them to either come back or refer this coupon to someone who needs it the most.

What are the various types of hotel discount coupons?

As every guest's demand differs, you need to incentivize them depending on what type of season it is and considering whether the guest is a newcomer or a frequent traveler.

Let's discuss a few types of discount coupons that your hotel can offer:

1. Coupons related to specific time or season

These types of promotional offers are tied to specific seasons such as holiday discounts or last-minute booking deals.

For Instance – you can offer promo codes such as SINGLESDAY on singles day. This is the best way to attract solo travelers.

It's done to encourage guests to take advantage of timely offers.

You can create urgency in the mind of travelers and attract them to book a stay now by saying that these discount schemes are valid for weekends only. Generally, this type of scheme works well when your occupancy is too low.

2. Coupons for larger groups (volume-based)

Volume-based discounts are generally given for large groups of travelers or ones who plan to have extended stays.

You can offer either a fixed percentage off the total booking price or can offer a free night's stay. This type of hotel coupon is mostly preferable for group travelers, families, or corporate events.

3. Value-added coupons

Through value-added coupons, you don't give guests a straight discount on booking services. Rather, you add value to a guest's stay by adding a bunch of benefits with it such as free breakfast, complimentary parking, or access to exclusive services.

4. Loyalty programs

Another type of discount strategy that hotels use is loyalty programs. Loyalty programs are a kind of reward/exclusive offer that hoteliers give to get more repeat customers.

Some hoteliers consider offering attractive rewards to guests such as complimentary breakfast, and it can make guest experience more valuable.

After all, the cost of acquiring a guest is more expensive than guest retention.

The motto of loyalty programs is not just to drive repeat bookings but also to exceed guests' expectations.

3 promising strategies to create effective coupons and promo codes

The idea behind using coupons and promo codes is to delight your guests and drive more bookings for your property. The secret lies in the effective implementation of such discounting strategies to encourage guests to book SOONER rather than LATER.

1. Identify your target audience

One way to successfully implement promo codes and coupons is to have a strategy in place.

For that, you need to identify who your target audience is so that you can personalize your offers to meet their needs. While if the majority of your target audience is frequent business travelers or holiday vacationers, then you can choose and personalize your offers accordingly.

A family-oriented hotel might offer discounts on local attractions. If done right, these coupons don't just fill your rooms, they build long-term relationships with guests.

2. Promote these offers

The other way to make the best use of promo codes and coupons is by marketing them on your website and social media channels. You can highlight your "special offers" on your home page or add a separate page that showcases the best offers that can pique travelers' interest.

The other way of promoting these exclusive deals is through influencer partnerships. As influencers have built a loyal community for a while now, you can expect more bookings for your accommodation.

When travel influencers share your enticing offers in their social media posts, their audience is more likely to check it out.

The next and most important tool for promo code promotion is through email marketing. You can send personalized emails to guests based on their preferences and booking history, and add these discounts in that such as:

Enjoy 15% off on your next beachside stay. Offer valid until Sunday.

Use promo code "BEACHSIDE15" by this Sunday.

This way, you can get more clicks on your offer and get repeat bookings.

3. Integration of promo code on booking engine

By integrating promo codes in the booking engine, you make the guest experience more comforting and memorable.

Usually, promo codes are personalized for each traveler such as business or family traveler such as STAY10 or 15. For guests, they can use the code and get a discount for their stay. Using a booking engine software, hoteliers can manage their promotions with ease.

A booking engine software helps hotelier to drive direct bookings and reduce their dependence on OTAs. Thus, it helps hoteliers like you to get more revenue share and maximize your bottom line.

How can hotel coupons drive more bookings during the off season?

Harmanjit Singh, Founder and CEO of Origin Studio, shared his perspective -

While working with a hospitality client during their slow period, he created a strategic digital campaign.

He found that offering generic discounts wasn't enough to attract guests, so he created dedicated landing pages that showcased "Local Explorer Packages" and ran this campaign for a limited time. The packages included room discounts, dining credits, and attraction passes.

Then, he curated his marketing strategy around helping guests explore fascinating things in the area. They used social media ads and email marketing to promote this limited time offer. The results were remarkable – a 35% increase in direct bookings compared to the same period during the previous year. Furthermore, the average length of stay increased by 1.5 nights.

The reason was clear- guests wanted to experience more amenities, and the offer went beyond just price considerations. Such value-added promotions help hoteliers secure more bookings during the low season.

What’s our take on promo codes and offers?

So, now you understand how important it is for you to offer coupons, promo codes, or launch seasonal promotions to entice travelers, get more direct bookings, and reward existing guests.

Treat this as an important part of your marketing strategy but make sure to create a balance between what you offer and how you can enhance your guest experience.

Probably, you end up attracting price-sensitive guests but that doesn't mean that PRICE is the only tag they consider before booking a stay with you.

For that, you can consider offering VALUE-ADDED PACKAGES by blending them with a limited-time offer that piques their interest.