Chekitan S. Dev
- Published in print:
- 2012
- Published Online:
- August 2016
- ISBN:
- 9780801452031
- eISBN:
- 9780801465703
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801452031.003.0003
- Subject:
- Business and Management, Marketing
This chapter focuses on the use of flash sale and daily deal sites in the hospitality industry. It reports on a study based on a survey of relevant practices in the global hotel industry that ...
More
This chapter focuses on the use of flash sale and daily deal sites in the hospitality industry. It reports on a study based on a survey of relevant practices in the global hotel industry that examines flash sales strategies and approaches. The study divided flash sales into daily deal sites, such as Groupon and LivingSocial, and private sales sites, led by Gilt Groupe, Rue La La, HauteLook, and Ideeli. Flash sales typically offer customers promotions of short duration that provide dramatic savings—usually contingent on achieving a threshold of customers accepting the proposed deal. In contrast, private sales sites require customers to sign up for or “enroll” in a program, usually with no fee or payment required, and receive regular e-mail notices about time-limited discount offers and promotions. The study found that hotel brands that used flash sales did well. To maximize the benefits of flash or private sales, brands should balance repurchase potential against margin potential. Evaluating a property on these two dimensions better frames the value proposition offered by such deals. Brands that are unable to convert customers from flash sales deals into returning guests must manage deal margins carefully and pursue cross-selling and up-selling opportunities to on-property guests.Less
This chapter focuses on the use of flash sale and daily deal sites in the hospitality industry. It reports on a study based on a survey of relevant practices in the global hotel industry that examines flash sales strategies and approaches. The study divided flash sales into daily deal sites, such as Groupon and LivingSocial, and private sales sites, led by Gilt Groupe, Rue La La, HauteLook, and Ideeli. Flash sales typically offer customers promotions of short duration that provide dramatic savings—usually contingent on achieving a threshold of customers accepting the proposed deal. In contrast, private sales sites require customers to sign up for or “enroll” in a program, usually with no fee or payment required, and receive regular e-mail notices about time-limited discount offers and promotions. The study found that hotel brands that used flash sales did well. To maximize the benefits of flash or private sales, brands should balance repurchase potential against margin potential. Evaluating a property on these two dimensions better frames the value proposition offered by such deals. Brands that are unable to convert customers from flash sales deals into returning guests must manage deal margins carefully and pursue cross-selling and up-selling opportunities to on-property guests.
Chekitan S. Dev
- Published in print:
- 2012
- Published Online:
- August 2016
- ISBN:
- 9780801452031
- eISBN:
- 9780801465703
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801452031.003.0002
- Subject:
- Business and Management, Marketing
This chapter distills important lessons from the Cornell Hospitality Brand Management Roundtable at Cornell University's Center for Hospitality Research (CHR), a one-day, interactive, high-level ...
More
This chapter distills important lessons from the Cornell Hospitality Brand Management Roundtable at Cornell University's Center for Hospitality Research (CHR), a one-day, interactive, high-level discussion among a select group of thirty brand executives, consultants, and professors who shared their experience and knowledge on a variety of key brand management topics. The roundtable featured provocative presentations of cutting-edge research studies by leading scholars collaborating with industry partners. The goal of the first CHR Brand Management Roundtable was to provoke change and push the status quo. Brand-related issues addressed during the roundtable include global brand building, branding by amenity, brand value, promoting brands over the Internet, brand rights, and branding by design.Less
This chapter distills important lessons from the Cornell Hospitality Brand Management Roundtable at Cornell University's Center for Hospitality Research (CHR), a one-day, interactive, high-level discussion among a select group of thirty brand executives, consultants, and professors who shared their experience and knowledge on a variety of key brand management topics. The roundtable featured provocative presentations of cutting-edge research studies by leading scholars collaborating with industry partners. The goal of the first CHR Brand Management Roundtable was to provoke change and push the status quo. Brand-related issues addressed during the roundtable include global brand building, branding by amenity, brand value, promoting brands over the Internet, brand rights, and branding by design.
