Hoteliers are becoming wary of discounting and frequent sales as they evaluate the long-term effects on brand perception, a survey of European hoteliers carried out by Hotwire.com reveals.

Seventy-five per cent of hoteliers indicated that discounting is having a negative impact on their brand.

Five years ago, as the recession hit and consumers began tightening their purse string, hotels responded with discounts and sales. Now, consumers appear to be hooked on sales causing some hotels to worry that maybe they’ve gone too far.

“Hoteliers are concerned that if their brand is seen as ‘always on sale’, it will be devalued and end up going the way of other companies and industries where consumers are never prepared to pay a premium,” Michelle Rosinsky, senior manager at Hotwire.com, said.

She added: “We’re not expecting that hoteliers will suddenly give up on discounting, because it is still an effective way to increase occupancy; however, we believe they’ll become more selective about the channels they use, the value of discounts and the timing of their offers. Discounting will become more last-minute and increasingly they will utilise opaque sites and mobile.”