2. Encourages More Direct Bookings

Even repeat guests sometimes fall into the habit of using OTAs (Online Travel Agencies) because it’s familiar or convenient. However, when they receive a private promo code that can only be used on your direct booking engine, they have a strong incentive to bypass OTAs and book directly with you.

This simple shift helps you:

• Retain control over the guest relationship

• Avoid costly OTA commission fees

• Gather direct guest data for future marketing

3. Easily Communicated Across Multiple Channels

Promo codes are simple to distribute and promote through a variety of marketing channels. Here are a few effective ways:

• Post-stay emails: Send a thank-you message with a code for their next visit.

• Loyalty program newsletters: Add a special offer code to reward frequent guests.

• SMS messages: Deliver limited-time promo codes straight to your guests’ phones.

• Printed materials: Include exclusive codes on printed receipts or welcome cards.

What makes promo codes powerful is their trackability. You can easily see which campaigns, emails, or channels are delivering results and refine your approach accordingly.

4. Reinforces Guest Loyalty Over Time

Loyalty isn’t built in one visit. But when guests see that they’re consistently rewarded for booking directly—whether it’s 5%, 10%, or 20% off—they begin to associate your hotel with extra value.

By giving guests something meaningful in return for their loyalty, you create a positive feedback loop:

• They book → receive a benefit → return again → feel appreciated → repeat.

This long-term strategy boosts your guest retention rate and helps you build a base of dependable, returning customers.

5. Protects Rate Parity with OTAs

Many hotels are bound by rate parity agreements with OTAs, which means they can’t publicly offer a cheaper price on their own website.

The beauty of promo codes is that they don’t break these rules. Since the discount is hidden behind a code and shared only with select users (via email, SMS, or direct communication), it remains private. This allows you to provide added value to your loyal guests without violating your OTA agreements.

🎯 Tips for Making Promo Codes Work for Your Hotel

Not all promo codes are created equal. Here’s how to use them effectively for maximum impact:

1. Keep It Simple and Memorable

Use easy-to-remember codes like:

• LOYAL10

• WELCOME20

• RETURN5

Avoid long or complex codes that guests will forget or mistype.

2. Make It Personal and Purposeful

Instead of just throwing out a generic code, tie it to a specific event or experience:

• “Thanks for staying with us during the summer—use SUMMER15 for 15% off your next visit.”

• “We appreciate your loyalty—enjoy 10% off with code LOYAL10.”

Personalization increases the emotional impact and improves conversion.

3. Mention It in Confirmation & Follow-Up Emails

Post-stay communication is a golden opportunity. Include the promo code in:

• Booking confirmation emails

• “Thank you for staying,” emails

• Feedback or review request emails
  Guests who had a great experience are more likely to return, and the code gives them one more reason.

4. Use Auto-Apply When Possible

If your booking engine or CRM can recognize a returning guest, automatically apply the promo code to reduce friction. The less work they have to do, the more likely they are to complete their booking.

⚠️ A Word of Caution: Don’t Make It Hard to Use

One of the biggest mistakes hoteliers make is requiring guests to hunt for a promo code.

If your guests:

• Need to ask staff for the code

• Can’t find it in their email

• Don’t understand where to enter it

…then chances are high that they’ll abandon the booking or return to an OTA.

Make sure the code is easy to find, clearly explained, and tested across devices—especially on mobile.

Ready to Try Promo Codes with CultBooking?

CultBooking’s platform makes it easy to create, manage, and track promo codes for specific guest segments. You can customize:

• Discount type (percentage or fixed amount)

• Valid dates

• Usage limits

• Channel restrictions

Whether you’re rewarding loyal guests or running a targeted promotion, promo codes are a low-effort, high-reward marketing tactic to boost direct bookings and improve guest satisfaction.