Hoteliers hesitant to reduce room rates are missing out.

Australian hotelier’s reluctance to offer discounts means almost 4000 hotel rooms in the Greater Sydney region are left empty each night, equating to more than $250 million worth of potential revenue each year.

Australian hotels are hesitant to offer price reductions on rooms because it may upset rate equality and dilute the brand’s image, according to GraysEscape.com general manager Gary Berman.

Mr Berman said Sydney’s hotel occupancy was approximately 85 percent and although this figure seems relatively high and consistent, it represents over 1.4 million vacant rooms per year.

“Many sections of the accommodation industry are opposed to discounting because of perceived impacts on brand image, supplier contracts and rate parity issues and this had made the industry much less competitive than it was 10 years ago,” Mr Berman said.

“Instead of offering a prospective customer a rate slightly lower than available publicly, some properties will let the rooms go empty; despite the fact the extra guests would spend money in the hotel and the minimal effect on costs.”

By offering discounted rooms, Sydney hotels can increase their bottom lines and cater to an unfulfilled market.

“Savvy consumers and hotels keen for more business could negotiate one-on-one via our website, with users of the unique site scoring one off confidential deals up to 20 per cent off the already discounted rate advertised on other booking sites," Mr Berman said.

“It’s a win-win for hoteliers and consumers."