The heated discussion over the value of flash sales on sites like Groupon and Living Social indicates that this high profile marketing tool doesn’t work for all hotels. While not surprising that steep discounts can drive substantial room bookings, it comes at a high cost to hoteliers given the deep rate cuts and commissions for the flash sales services.
Research by TravelClick finds that almost 40% of hoteliers are disappointed with the results of their flash sale campaigns and plan not to use the tool again. Frequently mentioned reasons include not only giving up large portions of the booking revenue but also that the guests attracted are typically non-returning bargain-hunters.
Certainly, a flash sale can be a good way to fill a room that would otherwise go vacant. But hoteliers may be best served redoubling their efforts with tried and true marketing techniques that come at significantly less cost.