An opaque hotel model allows a hotel to discount without letting its brand-loyal customers trade down to lower price points.

Question

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Opaque hotel models, such as those used by some booking websites, allow hotels to offer discounts on unsold rooms without publishing the hotel name upfront, thus preventing brand-loyal customers from seeing the lower prices and opting for cheaper options than they would normally choose, maintaining brand integrity and pricing structures.

An Opaque Hotel Model Allows a Hotel to Discount Without