If you’ve ever worked in travel, you’ll know this pattern:
Sales slow down. Pressure builds. Someone hits the panic button and says, “Let’s run a promotion.”
Cue another flash sale. Cue more bookings, but at thinner margins. Cue the cycle repeating itself a month/year later.
Having worked and consulted for brands including Skiworld, Ski Safari, British Airways and Nemo Travel, and recently launching my own cycling holiday business Pedal Ventures - I’ve seen this play out up close. And I get it. When you're sitting on committed inventory and the numbers aren’t stacking up, it feels like you’ve got no choice.
But here’s the kicker: price promotions are not a sustainable growth strategy. In fact, they often lead to a downward spiral that's hard to reverse.
So why do travel brands rely so heavily on discounts?
1. Committed stock that has to be filled
Travel businesses often pre-buy hotel rooms, flight seats, excursions or transfers. If they don’t sell, the business still pays. So selling something feels better than letting it go to waste, even if it means taking a hit on margin.
2. Hoping for “in-resort” recovery
Some brands justify selling at a loss up front, banking on the idea that customers will spend more once they arrive. Think drinks, spa treatments, or excursions. Sometimes this pans out. But often, it doesn’t cover the gap, and you’ve trained the customer to expect a discount from the outset.
3. Private equity pressure and hyper-competition
When VC or PE firms get involved, the game changes. These firms often prioritise rapid growth and market share over long-term value. That means big marketing budgets, aggressive pricing, and short-term thinking. If you’re competing in the same space, it’s tempting to follow suit. But copying that strategy without the same resources is a fast way to shrink your margins, or your business.
4. Promotions can actually backfire
Contrary to what many marketers believe, frequent promotions can erode brand trust. A review of 50+ studies found that customers actually prefer brands less when they see discounts too often, especially if they feel the original price was inflated or the promotion isn’t genuine.
What happens when you rely too heavily on promotions?
- You train your customers to wait for a deal
They know another one’s coming, so they stop booking at full price. - You lose pricing power
Even when you want to stop discounting, it’s hard to go back. You’ve undermined the value of your product. - You damage your brand
Promotions can signal that demand is weak or that the product isn’t worth full price, especially in premium or experience-led sectors.
So how do you break the cycle?
1. Invest in your brand
Brand isn’t fluff. It’s what allows you to charge more, build loyalty, and stand out beyond price. Strong brands create emotional connections. They tell a story. They make customers feel something. That’s what builds long-term preference, not 20% off codes.
2. Deliver exceptional customer experience
In travel, the experience is the product. From the booking journey to post-trip follow-up, every touchpoint counts. Great service makes people come back and recommend you. And it’s often cheaper than throwing more money at Facebook ads or discounts.
3. Focus on customer retention
Most travel brands underinvest in retention. Only half even have a proper strategy for it. Yet research shows that just a 5% boost in repeat customers can increase profits by 25% to 95%. The message is clear: look after your customers and they’ll look after your bottom line.
4. Be thoughtful with promotions
Promotions aren’t the enemy. They can work especially when they’re timely, strategic, and add value. But they should never be your default. Use them to drive behaviour (e.g., early booking), not as a crutch to fill seats last minute.
5. Price smart, not desperate
Psychology matters. Research shows that rounded prices (e.g., “£750” instead of “£749.27”) feel more trustworthy and attractive to customers, especially in travel. Don’t just slash prices, frame them better.
A final note
I launched Pollen with the goal of helping brands grow smarter, especially in industries like travel, where complexity is high and margins are tight. Since 2021, we’ve helped 17 businesses scale through better strategy, in-house marketing leadership, and flexible freelance teams that keep costs low and impact high.
If you’re running a travel brand, I know the pressure you’re under. But there is another way. You don’t need to join the race to the bottom.
You just need to build something people will come back to - at full price.
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