Caution ahead for hotel flash sale participation


With the recent saturation of daily deal sites into the travel and hospitality market, hotel managers have been warned to assess their participation in flash sales says an industry pundit.

An industry provider of revenue management solutions, Bonnie Spalding, Business Consulting Vice President of The Rainmaker Group advised the impact of a hotel’s involvement in flash sales is “difficult to estimate and still relatively unproven”.

 “No one is forcing you on this bandwagon,” Ms Spalding said.

According to Ms Spalding hotels should first review their target market as “playing anywhere in this space… could lump you in as a discount product from a consumers perspective.

Ms Spalding said ensure that you are viewing flash sales as a tool available to you, not as a supplement to your existing demand.

She also suggested suppliers hold the power and companies with which hotels partner should be carefully vetted, ensuring they cater to the demographics of guests.

Hotels should also question how much flexibility is afforded with blackout dates, Ms Spalding said.

Ms Spalding said if a hotel does participate in a flash sale they should ensure demand is tracked separately through revenue management systems and a “post-mortem analysis” is performed on the success of the sale.

Source = e-Travel Blackboard: S.P.
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