When travelers sign up for the new Groupon Getaways with Expedia they are told this is the best thing to happen to travel since the inflatable neck pillow. That may be true for the traveler, but what does it mean for your hotel?
Could the Expedia/Groupon combination turn your hotel rooms into a commodity like an airline seat – a product with little or no differentiation – left to compete almost exclusively on price? Here are questions you should be asking.
In a recent article, “What Groupon Getaways With Expedia Means for Hotels” Expedia puts forth the proposition that it makes good business sense to sell your $200 room for $50. Here’s their thought process:
However, if you are a marketer interested in differentiating your hotel, building a strong brand with loyal and profitable customers, then promoting rooms on Expedia/Groupon at a huge discount is probably the last thing you should consider.
Travelers may see Expedia/Groupon as the best thing to happen since the inflatable neck pillow. It may also be a good deal for Expedia/Groupon. It’s hard to imagine a scenario where it would ever be a good idea for your hotel.
What do you think?
About Madigan Pratt
Madigan Pratt has more than 25 years of strategic marketing communications experience, including advising Fortune 500 companies, Tourism Boards, destinations, and luxury resorts. Madigan leads a team of marketing, public relations and social media professionals at Madigan Pratt & Associates. Originally founded in New York and now headquartered in Williamsburg, Virginia, Madigan Pratt & Associates is an award-winning marketing and advertising agency specializing in customer relationship marketing for hospitality and luxury service clients.
A well published author and popular conference speaker, Madigan provides expert counsel to the hospitality industry and publishes tips at Hospitality Marketing Blog. He has served on numerous travel industry association boards including the Caribbean Tourism Organization, The Association of Travel Marketing Executives and HSMAI Resort Marketing Advisory Board.
Music to my ears
Well done Madigan, I am with you all the way on this.
More Than 50% Of Groupon's Business Customers Do Not Want To Issue Groupons Again
Interesting Reading: A Groupon Merchant Survey:
2011-07-29 Sr. Naranja
Totally agree with Madigan
I'm so glad some people see sense, and also make a stand for the supplier, a commodity is as good a word as any to describe what Expedia and Groupon &c.do to denigrate hotels to the absolute bottom of the pit.
Great Article. Makes sense!
Mr. Pratt's clear eyed evaluation of the negative effects of bargain clearinghouses like Groupon on your establishment's value and service should be read by all in our industry...