The issue of whether or not to discount is becoming increasingly contentious as companies struggle to compete in an ever more strained market.

Should revenue managers in the travel industry reduce prices to stimulate demand? What are the alternatives? And what damage could be done? EyeforTravel research has shown that this is a crucial issue facing revenue managers today.

The 2001-2002 price cuts did long-term and short-term damage to the hospitality industry. Hotels lowered rates to stimulate demand and increase occupancy, but this was quickly copied by the competition, rendering it ineffective. Even now, it