Hehe... Maybe! But suffice to say that from a CFO's perspective I can understand why they are not dropping their pants! Because it doesn't make sense with the price elasticity of demand in my view not justifying the significant price drop that you seem to suggest.
Well, that's your view, so fair enough. Though within the hospitality industry discounts certainly do stimulate demand: it's why room rates yo-yo up and down.
You may find it ludicrous to travel to Bangkok simply to benefit from a hotel room $50 cheaper than normal, but for someone in Kuala Lumpur the discount could be sufficient to trigger a decision to travel. The $50 drop in price will also attract people already committed to visiting the city to trade up to higher category hotel.
Just two examples of situations where a discount can generate a positive contribution from a product which would otherwise perish unsold, generating zilch.