The long answer- here goes.

In the last few years the influx of daily deal sites stampeding our inboxes has increased drastically. First there was Groupon, followed by Living Social; the two most popular to date, and finally a string of lesser-known sites. More recently, even Amazon and AOL have gotten on the bandwagon and developed daily deals.

Deal sites are very popular and seem like a great opportunity for hoteliers to increase bookings, but the type of guests that take advantage of the deals will not become loyal guest.

When trying to decide if a deal site marketing campaign is right for you, you need to weigh the positives and negatives carefully.

The Positives of Daily Deal Sites:

-Good for bringing in new guests.

-If your hotel is a seasonal destination offering a deal during the off-season can increase your occupancy during your slow time.

-Quick increase of cash flow.

-Deal hunter websites are viewed as city guidebooks. Trips can often be planned around local deals.

The Negatives of Daily Deal Sites:

-Hotel owners only make 25% of profits from their deal.

-Large and unexpected numbers of guest can lead to poor service.

- 22% of customers don’t redeem vouchers.

-Most of the guests will never come back.

-There are websites that consumers can sell their deals back to which your hotel cannot monitor.

When weighing your options and deciding if a deal site campaign is right for your hotel remember to consider your long term and short-term goals. If you need to make money fast, an online deal could be a great revenue generating strategy. However if you’re seeking long-term growth these alternatives could be better suited for your property.

Alternatives to Daily Deal Sites:

-A hotel mobile app would allow you to send instant deals through push notifications (link to previous).

-Offer a tab on your Facebook page with discounts for fans (this can be integrated into an app as well).

-Create special offers that are only available by booking directly through your website.

Offering discounts through channels that you have total control over is ideal for a long-term revenue growth strategy.

If you would like to learn more about how a Mobile Strategy is a good long-term strategy, download our information packet.