Answer:
Please dont think to reducing the current price rates, people will buzz till your rates are low. Once you try to increase them they stop coming.
Be a good customer first, Know your customer.
Give them quality food in the price level.
Show him some variety in items.
Let him taste the best in your hotel.
Keep yourself updated with internet.
Serve him better as much as you can.
If you can do these, word of mouth can help you in a great ways. You cant buy that publicity with throwing money.