There are many discount websites found in the internet such as Living Social and Groupon but according to the recent survey, those websites do not give much contribution to the number of rooms booked in their hotels.
Others think that they still get benefit from discount websites. According to the TravelClick a firm focusing on hotel market strategy said that only 27 % of hoteliers using flash sale websites tactic repeatedly. As much as 33% of properties said that flash sale websites are not such a good idea while 17% said that they would not use the same tactic of assigning the sites again after they visit it once.
This survey involves about 400 independent and chain properties in the Europe especially in United Kingdom main areas. The survey said that there are five main reasons why hoteliers are not really interested in using group discount websites. What are they?
The first cause of the problem is that deal’s result which is very disappointing. Most of customers on hotels want lower price in which it also cause another new problem to the hotel and travel agencies itself.
The second cause is that most revenues per room are not enough. Relating with the previous cause, the customers want lower deal. In the same time, hotels and travel agencies want to get lots of revenues. If hoteliers too much discounts for travelers, they will not get any payback. But when hoteliers do not give meaningful discount, there will be no traveler coming to their hotels and inns. The same problem also happens to travel agencies. The higher they give the price, the lower customers they get.
Then move to the third cause why many hoteliers leave discount websites, it is because they gave up too much revenue to the sale site. Well, it is clear here. The first until third cause are related each other. In discount websites, hoteliers are forced to give the lowest price in order to get loyal customers. With the lowest price, they will not get any revenue and their business is threatened. In fact, like other businesses, hotel businesses need to increase revenue as much as possible.
Fourth, customers who come to stay are not those who are targeted. Those who look for discount mostly come from low-mid class of people. Ironically, the possibility for them to come back again could not be predicted since they just look for discount, for lowest rate in a hotel. Most of high class hotels want to get loyal high class guests who will see their quality and service not just the discount. This class of guests usually will pay hotels at any rate as long as the hotels could give best services for them.
Fifth, hoteliers could not see any repeat business. Giving discount more often is not what a hotel wish for. If they give discount repeatedly then their business will be loss so they will give price cut in the time when there are remaining rooms only to make their name known by others.
From many discount websites found on the internet, Groupon gets 60% rates to be visited by hoteliers, Living Social gets 28% and JetSetter gets 15%. This percentage, according to Jan Tissera, President of TravelClick, does not make the clients satisfied with what they get.