What it means in plain language
Loss leaders are dangerous. They train OTAs to prefer your hotel, train guests to expect the rate, and feed back into your STR average - depressing your benchmark. Use sparingly: a 2-night opening rate for a new property, a true off-season liquidation. Never as a habit.
How Loss Leader fits in the bigger picture
Loss Leader doesn't live alone - it sits inside the Pricing & Rate Strategy category and connects to 3 closely related concepts most working revenue managers track in the same breath. Pair this definition with the related terms below to build a working mental model - definitions in isolation are easy to memorize and easy to misuse.
Related terms you should also know
Each of these is one click away - start with whichever you don't already use daily: