Although western economies were undoubtedly affected by the recent global pandemic, many regions throughout the world have bounced back. The United Kingdom is a perfect example of this observation, and consumers are once again beginning to loosen their purse strings.

While many articles have discussed the broader implications of this boom, it is equally important to examine how it has impacted specific sectors; the hotel industry being a perfect example. Why have the majority of UK-based properties slashed their prices by as much as 45 per cent? Does this make sound fiscal sense? How have consumers reacted? Let’s examine these questions to better understand where we currently stand.

The Origins of Black Friday

Some readers may be surprised to learn that Black Friday has existed since the 1950s. At the time, it was used to describe the frustrating traffic conditions following Thanksgiving Day, and to highlight the long lines found within many retail stores. While the initial term was not exactly positive, it eventually became synonymous with the shopping frenzies that represented the true beginning of the holiday season.

So, it only stands to reason that the hospitality industry was happy to capitalise on heightened consumer interest. As travellers began planning festive getaways earlier each year, hotels realised that combining visibility with irresistible pricing could boost both occupancy and brand loyalty. This year, Barceló stands out by extending its best Black Friday rates to all travellers — even those outside its loyalty programme — pairing competitive prices with real on-property benefits like dining credits, upgrades and late check-outs, all presented with clear terms and flexible booking dates. It’s the perfect moment to explore and secure the most exclusive black friday hotel deals before they disappear.

Hotels soon began to pick up on these very same opportunities. Thanks to a surge in demand for accommodations, they were also able to reduce room prices without overly impacting the “bottom line”. This is one of the main reasons why travellers tend to keep a close eye on hotel rates during the Black Friday period.

Is Less More?

At first glance, it still seems a bit odd that hotels are willing to slash prices during busier times of the year. It may even appear to go against the principles associated with supply and demand. Under normal circumstances, this would be a valid observation. However, we also need to remember the importance of remaining competitive.

Consumers are always searching for a balance between price and quality . While rock-bottom rates may initially appear attractive, these can sometimes be linked to substandard services. On the other hand, extremely high prices can be prohibitively expensive; negatively affecting overall occupancy rates. The key here is to find the proverbial “Goldilocks” zone — an area where cost and quality appeal to the majority of guests.

So, hotels soon to enjoy predictably high occupancy rates can often afford to lower their prices, even if only for a limited period of time. This brings up yet another important metric. There are additional reasons why franchises and boutiques alike are willing to cut accommodation fees.

Putting the Customer First

There are currently more than 9,800 licensed hotels throughout the United Kingdom. Although this is great news for consumers looking for variety, it can present a very real challenge for property owners. Competition has become rife, and hotels now need to provide truly innovative solutions. Reducing rates during the Black Friday period is one way to gain an edge. Here are some of the benefits associated with this strategy:

Increased occupancy rates are virtually guaranteedGuests are more likely to leave positive online reviewsRock-bottom prices help to boost brand recognitionOne-time visitors may convert into loyal customers

These are even more relevant when discussing the demands of younger generations that have become much more discriminating when it comes to the hotels they choose to partner with. Providing quality services at discounted prices could very well spell the difference between success, and anonymity.

A Welcome Change

Black Friday normally extends from the fourth Friday of every month to the following Monday (now known as “Cyber Monday”). Consumers will often spend a great deal of money during this window, so it is understandable that they will welcome reduced accommodation rates.

However, we also need to point out that amenable pricing packages are not the only ways in which hotels can cement a solid reputation. Other strategies such as all-inclusive package deals, travel vouchers, and group discounts are just as effective. Guests will respond even more positively to these opportunities, and property owners can benefit as a direct result.

A Caveat to Mention

Although prices reduced by as much as 45 per cent may seem attractive, it is just as important to read the fine print. For example, some hotels may suddenly raise room rates immediately before Black Friday. When reduced, they appear to offer significant discounts. However, increased base prices do not accurately reflect the rebates that customers can expect. This is why it is always important to read the fine print and to speak with a representative to appreciate any other conditions that may need to be met before confirming a reservation.

There is no doubt that consumers will be out and about during this year’s Black Friday sales event. Those who intend to travel should be pleasantly pleased with rock-bottom accommodation rates — so why not take advantage of such offers?

By Nathan Spears

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