A few of us were chatting about this in the Accor threads a week or so back.
I wish they had reduced employers contributions or some other tax on businesses which would have directly helped businesses rather than pit the operator against the consumer.
By reducing the VAT which is a consumer tax it's not unreasonable for the customer to expect to see a reduction in their bill particularly given the amount it has been reduced to.
Obviously the dynamic nature of hotel pricing can hide it but the idea IMO was to reduce VAT and stimulate demand by putting heads in beds.
I'd have preferred something like a 10% reduction in employer contributions and a 10% reduction in F&B VAT which would have meant both parties win rather than reducing VAT from 20% to 5%.