This article is about Groupon and how it could work for travel businesses. Four reasons are detailed by the article below:
1. Costs remain the same for any companies such as restaurants, hotels, museums...so the article is saying that whatever the number of guests, costs are the same so why not filling the empty seats when the business is very low. It makes a lot of sense now for businesses can fix their high costs. So Groupon can be the solution.
2. The second reason shows that if the merchant can afford to have zero margin by selling his rooms with 40 or 50% of so he can definitely look for a little bit of revenue by the addtionnal products that he can sell during the guest experience.
3. According to the article, it can allow the companies to be in the middle of a big buzz if the experience for the guests is amazing then they can definitely buzz about it. It can allow the companies especiallly the small ones to have a very broad exposure on the web and maybe create a buzz.
4. The last reason is about the impact of using Groupon - saying that it's much better to spend money with Groupon and spread a buzz rather than spending money on a huge advertising campaign. It will also provide a large impact.
Groupon will also be more aand more everywhere by being visible on travel sites as ancillary services and suggest other offers with good deals available on Groupon site.
The article is also talking about the daily deal model: this model is dealing with guests that are waiting for coupons everyday to go out at a restaurant or to go at a museum. I do not think that guests can use the daily deal model forever because you are not interested by all the deals that they can offer you and sometimes guests need to plan in advance rather than being sponteneous everyday by choosing a deal on Groupon. It is like you are buying more a discount price than an experience that you really wish to do !
As we said in class, Groupon can not be used for all the hotels or with conditions. Honestly I do not think that Luxury hotels can use this kind of tool to promote their hotels or their new offers during their low seasons. But promoting some packages for business travellers on Groupon can be a good idea especially for people who are travelling a lot and companies who are looking for discounted trips in order to save money on the travel budget. It can also allow the business travellers to create a kind of buzz in their community, to come back with their family and allow the hotels or restaurants...to have a huge visibility.
Link to the article
1. Costs remain the same for any companies such as restaurants, hotels, museums...so the article is saying that whatever the number of guests, costs are the same so why not filling the empty seats when the business is very low. It makes a lot of sense now for businesses can fix their high costs. So Groupon can be the solution.
2. The second reason shows that if the merchant can afford to have zero margin by selling his rooms with 40 or 50% of so he can definitely look for a little bit of revenue by the addtionnal products that he can sell during the guest experience.
3. According to the article, it can allow the companies to be in the middle of a big buzz if the experience for the guests is amazing then they can definitely buzz about it. It can allow the companies especiallly the small ones to have a very broad exposure on the web and maybe create a buzz.
4. The last reason is about the impact of using Groupon - saying that it's much better to spend money with Groupon and spread a buzz rather than spending money on a huge advertising campaign. It will also provide a large impact.
Groupon will also be more aand more everywhere by being visible on travel sites as ancillary services and suggest other offers with good deals available on Groupon site.
The article is also talking about the daily deal model: this model is dealing with guests that are waiting for coupons everyday to go out at a restaurant or to go at a museum. I do not think that guests can use the daily deal model forever because you are not interested by all the deals that they can offer you and sometimes guests need to plan in advance rather than being sponteneous everyday by choosing a deal on Groupon. It is like you are buying more a discount price than an experience that you really wish to do !
As we said in class, Groupon can not be used for all the hotels or with conditions. Honestly I do not think that Luxury hotels can use this kind of tool to promote their hotels or their new offers during their low seasons. But promoting some packages for business travellers on Groupon can be a good idea especially for people who are travelling a lot and companies who are looking for discounted trips in order to save money on the travel budget. It can also allow the business travellers to create a kind of buzz in their community, to come back with their family and allow the hotels or restaurants...to have a huge visibility.
Link to the article
I found this article very interesting for hoteliers in the sense that it reprensents a new opportunity to generate revenue. Just like Deborah pointed out, if hoteliers are ready to sell with zero margin, they can create income through additional revenue. Hoteliers tend to forget that anscilliary revenue is almost as much important as selling a room.
RépondreSupprimerI agree with Deborah when she says that she would not recommend luxury hotels to work with Groupon. I would rather recommend it for 3* hotels when the demand is low.
I agree that Groupon.com might work with travel businesses but I think luxury hotels for example have to be very careful. I really think it can be dangerous for luxury hotels image to work with this kind of discount salers.
RépondreSupprimerTo me, Groupon.com has it limitation as Deborah said in the sens that the way of working of this website is based on daily deal model. Even if people are looking forward more and more discount, it does not offer the possibility to plan your projects and people can be bored of this system.
But I'm sure Groupon.com still getting a great success, so hoteliers will continue towork with them, they just have to be careful of the image they reflect to their non Groupon.com customers.