Discount-first demand platforms
There is a category of hospitality technology built around one mechanism: filling your slow periods with last-minute discounts. Send an offer to a blind audience, hope someone bites, fill a table that would otherwise be empty.
The short-term logic is understandable. The long-term damage is real. Clients trained to return only when you’re offering 30% off are not clients — they’re deal-seekers. The platform gets the margin. You get the traffic. When the discount ends, they go elsewhere.
Harvard Business Review research confirms it: discount-led retention programmes reduce long-term customer willingness to pay by 15–25%. The very mechanism designed to bring people back is eroding the relationship every time it fires.
More critically: these platforms know nothing about individual client behaviour. There’s no prediction. There’s no identification of who specifically is at risk. It’s a blanket promotion sent to a segment that may not need it — and may actively resent it.