Christmas bells and New Year celebrations are over and Easter is fast approaching. We are now in the busiest trading period in Maldives tourism business. In other words we are now in the middle of Peak Season or Festive Season as one might say. Time is now, to think about Low Season and start drawing your strategies to bring more profitable business during the low demand period.

Traditionally, high season in the Maldives is considered from October to April – and low season from May to September. However, some hotels may see this differently depending on the type of clientele, nationally and geographical origin of clients among many other factors.

Maldives Tourism statistics show a decline in tourist arrival during the months May to July and in some cases September. Due to this trend most hotels will consider the period as low demand period and introduce different strategies to bring-in enough business during this period. To begin with, most hotels will publish lower rates for this period while others keep their rates same throughout and introduce various offers for the low demand period.

These days various strategies and offers are used by hotels to be “ahead of the competition pack”. “Stay Pay” deals are always attractive as you are literally discounting 15% – 25% from your room rates. As Maldives tourism is heavily dependant on tour operators and travel agents their net rates will have to be discounted by at least 25% off rack rates to meet commission standards. So why do you have to offer another discount to drive more business? Don’t you think that will lower your RevPAR hence effecting your bottom-line? I think heavy discounting is not going to bring more business but dilute your brand and peoples perception on the product.

However, the industry seems to be working differently. A recent intelligence shows that most of the resorts in the Maldives have already placed “stay pay deals” for the period January to April 2009. Recently, a Managing Director of one of the top European tour operators said to me “we have received numerous offers over the last weeks, I don’t know which one to push first. You know flooding the market with offers won’t simply help”. I am taking that the reason for those heavy offers are directly attributed to the transitory demand pattern from some of our feeder markets. But what do we really do, when demand shifts and booking pace is slow? This is a question often asked when the going gets tough – and when we hear this question over and over again we resort to discounting, hoping that will attract more business.

Take your thinking-hat from wherever you left it last and start thinking now. Be creative and find ways to bring more business without heavy discounting. People will first judge your hotel by the rates offered. Heavy discounts will under-value your hotel and make it less appealing. Your rates determine the position of your hotel. People that don’t know your hotel or brand name often judge it by the rates offered. In their effort to determine “value” people will use your rates as their first criteria.

Higher rates will raise their expectations and impression of your hotel. Be prepared.