RevMAX Blog

Articles - 05_’12: Business travelers going rogue

12 April 2012 8:59 AM
By Patrick Mayock
News Editor-International
patrick@hotelnewsnow.com
 

Story Highlights
  • Unmanaged business travelers make up 70% of the market, according to PhoCusWright.
  • Hoteliers should shift focus from travel managers to the end user.
  • Unmanaged travelers are more likely to research travel on OTAs, but they’re more likely to book on brand.com.

SHERMAN, Connecticut—U.S. business travelers have more control of their own bookings than ever before, which means hoteliers should think outside of corporate travel policies and consider the end user, according to PhoCusWright research.

“You have to think of them as free agents,” said Carroll Rheem, director of research, during a webinar titled, “The U.S. Business Traveler: Managed, Unmanaged and Rogue.”

 

Carroll Rheem

Whereas the focus in the past rested primarily on travel managers because they were the decision makers, today hoteliers must place greater emphasis on the travelers themselves, she said.

 

For one thing, unmanaged business travelers—those who aren’t constrained by a corporate travel manager—make up approximately 70% of the market, Rheem said, citing numbers from a recent special project PhoCusWright conducted.

For another, most business travelers lack a travel planning routine, which suggests hoteliers have an opportunity to provide a better booking platform to capture market share, she said.

Only 29% of business travelers have a booking routine. “Even among the managed group the response is only 32%,” Rheem said. “… This says there are a lot of opportunities for new development and openness to trying new business models and trying new features. It also says to me there are a lot of problems to be solved.”

Going rogue
Rheem focused on several travel segments during the webinar, including hotel, air and car rental.

“Ultimately, hotel is the area where we see the most rogue behavior (with managed travelers),” she said.

“When you’re in the decision-making process, there are two kinds of scenarios that really drive rogue behavior: Sometimes there are just too many options. … And other times there are just not enough options for you, especially in that mid-range company that doesn’t have a very comprehensive policy.”

The top driver of rogue behavior, however, is convenience, cited by 47% of respondents to PhoCusWright’s study.

Price also is an influential driver, cited by 30% of travelers.

“Also, loyalty programs are a pretty significant driver,” Rheem said. “One in five road travelers say they accumulate miles or status from a brand that’s outside of company policy. Those points are sticky, and business travelers love those points.”


Booking behavior
Seven of 10 unmanaged business travelers said they used online travel agencies when researching travel. Websites for travel providers themselves (e.g., brand.com) was the second most popular, cited by 61% of unmanaged respondent.

When it came to actually making bookings, however, unmanaged business travelers (53%) were more inclined to book at brand.com than an OTA (50%).

“The hotel brand websites coming out on top is not necessarily what you would expect to see,” Rheem said. “… OTAs were far ahead of supplier websites when it came to shopping. But when it comes to booking, a lot of these savvy business travelers are doing the flip. …

“The savvy business travel is often making that switch often specifically for hotel websites because of points,” she said.

Other findings
Rheem highlighted several other findings from her research during the webinar.

  • 39% of managed travelers mix business travel with leisure travel; unmanaged travelers number slightly more than half.
  • 30% of business travelers said Web-based presentation and video conference tools did not impact their travel plans. Of the remaining respondents, 25% said the tools impacted plans “very little,” while 30% said “somewhat.” Only 2% said the tools impact plans “dramatically.”
  • A “good website experience” trumped price when using particular websites to research travel.


Articles - 04_’12: PKF: Major markets are getting expensive

 
 
 
 
 
Rising occupancy levels will enable hotel managers in the nation’s major markets to significantly raise their room rates in 2012. The average daily room rate for hotels in the 50 metro areas for which PKF Hospitality Research prepares a Hotel Horizons forecast is projected to increase 5.3 percent in 2012. This compares to an ADR increase of just 2.7 percent for all other U.S. hotels located outside of these 50 markets. Favorable supply and demand conditions in the large metro areas during 2010 and 2011 have set the stage for the strong 2012 ADR forecast.
 
SUPPLY
The impact of the lack of financing that started to choke the development pipeline in 2008 became evident in 2011. According to Smith Travel Research, the supply of hotel rooms in the nation’s major markets increased by just 0.8 percent in 2011. This is less than half the long-run average annual increase in supply, and the lowest year-over-year growth rate since 1995.
Of the 50 cities in the Horizons universe, only six markets are projected to see their lodging inventory increase by more than 2.0 percent in 2012. New Orleans is forecast to experience the greatest increase in supply (4.9 percent) because of the residual impact of the re-opening of the 1,193 room Hyatt Regency in the fall of 2011.
Conversely, PKF-HR expects a reduction in the room count in eight metro areas during 2012. In several market areas we are observing the temporary closing of hotels that have recently been purchased and are scheduled for major renovations. The upgrades in facilities and services are designed to reposition these properties in the marketplace upon reopening.
 
DEMAND
Concurrent with the lack of new supply has been a surge in the demand for accommodations in the major lodging markets. In previous articles we have documented the strong recovery of the nation’s coastal and gateway cities from the depths of the 2009 recession. This has helped to buoy the overall average growth in demand for all 50 Horizons markets. During the past two years, lodging demand in the nation’s major metro areas has increased a cumulative 14.9 percent.
Lodging demand in the major markets is forecast to increase by 2.5 percent in 2012. Leading in demand growth are the cities of New Orleans and Miami. Special events and a strong convention calendar are driving the demand for hotel rooms in New Orleans, while the growing economy in Brazil is stimulating significant levels of visitation to Miami.
 
OCCUPANCY
Relative to 2010 and 2011, the 2.5 percent demand growth rate forecast for 2012 looks small. However, it needs to be noted that the overall occupancy level for the 50 major lodging markets is projected to reach 66.3 percent during the year. This is nearly one percentage point above the 65.4 percent long-run average occupancy level as reported by STR. In fact, 28 of the 50 cities in our Hotel Horizons universe are forecast to exceed their long-run average occupancy level in 2012. At such lofty occupancy levels, major market hotels will enjoy an increasing number of capacity nights, thus limiting their ability to accommodate additional room nights.
 
ADR
With occupancy levels in so many cities expected to exceed the long-run average, we are beginning to see operators capitalize on these favorable market conditions and increase room rates. The ADR for the nation’s largest hotel markets is forecast to rise 5.3 percent in 2012, almost twice the STR long-run average of 2.8 percent, and 3.2 percentage points above the pace of inflation.
ADR is forecast to grow in excess of 8.0 percent during 2012 in four of the 50 Horizons markets. With occupancy levels nearing or exceeding the 80 percent mark in San Francisco, Miami, and Oahu, property managers in these cites certainly posses the leverage to push room rates. We also expect New Orleans hotels to benefit from premium pricing during their special events and achieve an annual ADR increase of 8.6 percent.
High development costs, zoning, and scarcity of affordable capital typically serve as obstacles to development in the nation’s larger metro areas. These factors will continue to limit the amount of new competition entering these cities. With occupancies approaching all-time highs, PKF-HR forecasts major market ADR will continue to grow in excess of 5.0 percent through 2015.
 
 
 


Articles - 04_’12: The Value Of Pinterest to Hotel Sales & Marketing

In February Pinterest drove more traffic to websites than Twitter, Google+, LinkedIn (LNKD), and YouTube combined. (HotelMarketing.com, 3/26/12). Couple that statistic with the fact that 93% of its users are females, and you have a powerful tool for the leisure and social market. It only took 9 months for Pinterest to go from 50,000 users to 17 million – it took Facebook 16 months. (commsource)
In February Pinterest drove more traffic to websites than Twitter, Google+, LinkedIn (LNKD), and YouTube combined. (HotelMarketing.com, 3/26/12). Couple that statistic with the fact that 93% of its users are females, and you have a powerful tool for the leisure and social market. It only took 9 months for Pinterest to go from 50,000 users to 17 million – it took Facebook 16 months. (commsource)
Pinterest formerly told its users to not use the site for self promotion and pin stuff they found on other sites. This lead to a potential copyright infringement issue as many photos are copyright protected to their photographers. Pinterest changed its user agreement to encourage ‘pinners’ to post their own photos and other ‘stuff’ thus opening the flood gates for business use. (WSJ, 3/26/12)
In an article entitled Is Pinterest the New Facebook (Jessi Hemple, Fortune Magazine, 3/22/12) differentiated the two in the following manner. “People use Facebook and Twitter to talk to each other, not necessarily to discuss things they might want to buy. In contrast, Pinterest users are more often in a shopping mindset when they are using the service. If you're keeping a pinboard called "Spring handbags I'm considering," there's a good chance you'll click through and make a purchase.”
What you pin on Pinterest should support and enhance your brand. Pinterest is all about envisioning an experience and that dovetails nicely with the emphasis in hospitality on creating guest experiences rather just ‘selling’ them a room. It also is purely visual which eliminates the marketers’ adjectives in copy that the customer has long since stopped believing. Pinterest creates a sense of place and helps visitors to the site visualize experiences they may have at the hotel – they can put themselves in the pictures.
However, like all social media, a strategy for what the property wants to accomplish with the page needs to be in place prior to engaging and not just ‘pinning’ everything from the web site or Facebook. Pinterest to be used well should also focus on the destination as well as the property. “When it comes to pinning, the breakdown will be approximately 70% about the city and 30% about the hotel, (Kelli) Crean (ecommerce manager for the Roosevelt Hotel) said.” (HotelNewsNow, 3/28/12)
Pinterest allows multiple pages and contests. Use the multiple pages to focus on many different experiences at the property. As Pinterest is so new it is hard to use the term Best Practices but the following can be a guide to a Pinterest strategy:
Leisure Travel. As Pinterest users are 93% female and it is females who normally gather information and pick destinations for summer travel, it is the perfect medium to stimulate web site traffic this summer. Make sure that your page has interesting pictures not just pics of a bed in a room unless it is a great bedding package. Include photos of experiences in your destination and don’t forget the kids — if you have a great kids offering and/or unique kids menu, take a picture and ‘pin’ it!
Weddings. Brides love Pinterest according to USA today "It's changing the industry" for vendors, planners and magazines, says Anne Fulenwider, editor in chief of Brides. Since she took over the title in November, Pinterest has "exploded and really changed the conversation." A majority of her readers are pinners. (USA Today, 4/13/12) Don’t just pin a picture of the ballroom set for 250. What do you remember about your wedding – wasn’t it the details, the little things? Pin a picture of a beautiful place setting, a napkin fold, a centerpiece, etc. Do your pin-ing with a sense of style! Build a page where your brides can post pictures of the wedding they had at your property – this counts as a recommendation!
Meetings. Don’t just pin a banquet room set for 120 theatre style. Pin a detail of a special break. Pin a photo of a special lunch prepared by chef. Pin a pic of the banquet menus for special breaks, a team building program you offer, meeting attendees taking off for a quick 5k before the meeting – the only limit is your imagination! Run a contest for meeting planners!
Restaurant and Bar. What can I say but don’t take a pic of the peanuts or bar mix unless it is something really special! Pinterest loves F&B! Pin a pic of a special app or drink to promote ‘happy hour’. Serve a spectacular burger? Pin it! Take a detail from one of the chandeliers or if you are a historic hotel, pin your claim to fame or a detail from the original building.
Pinterest is perfect for all types of properties but it, like Facebook, levels the playing field between the boutique, lifestyle and independent hotels and the large chains. If you don’t believe me, log onto Drury Inns’ page – you will find the most appetizing pic of a hot dog I have ever seen!
Real simple Remote Revenue Management can drive your REVPAR this summer but summer is coming soon! Don’t wait – ask us how we do it! Click here for details http://tinyurl.com/3fuysftthen call us at (303) 618-4065 or email carol@carol@carolverret.com . We’ll share success stories with you!
Carol Verret Consulting & Training
(303) 618-4065
www.carolverret.com
carol@carolverret.com
www.hotelsalesblog.com


Uncategorized - 04_’12: The SEO Obsession

A very practical and relevant commentry on current needs and best practices – what was is no longer the primary goal in marketing and growing online revenues. SEO is still important but relevant content and online marketing with appropariate keywords will generate powerful results and offer the flexibility to be seasonal and event specific.

Nagib

Apr 18, 2012 7:23 AM, By Forest Key, buuteeq

Hoteliers Should Focus on More Measurable, and Realistic, Marketing Strategies
Many GMs, revenue managers and marketing directors at independent hotels are obsessed with search engine optimization (SEO) and in my opinion it’s almost entirely a waste of money and time. There’s a myth, perpetuated by digital agencies that make a lot of money from SEO consulting, that by spending thousands of dollars each month, hotels can control their position in Google search results and eventually reach the top spot. In the hospitality industry, the quest to reach one of the coveted top three slots, which receive about 80% of the click action, is futile. Here’s why:
The top three Google results are often the same when travelers search for hotels. (Note: I’m not referring to the actual first three results that top the page, because they’re paid search ads (SEM), or the directory of properties that often follows which are part of “Google places”). The number one organic Google result is (virtually) always TripAdvisor because its active social commentary on several properties in your market makes it a more relevant search result and guests visit it more often than any specific hotel website. For similar reasons, the second spot will almost always be a local lodging directory that addresses inquiries such as “Dallas hotels.” So, the third position is potentially up for grabs, but will likely be claimed by an OTA (e.g., Expedia) or a competitor that has been online for years.
If 80% of the action is in the top three slots and they’re essentially out of reach, where does that leave everyone else? If you’re spending thousands on SEO through a digital agency to move from position nine to seven, you’re likely making a bad investment when you consider other online marketing strategies that are measurable and deliver results.
Yes, there are a few basics all websites need for online discovery, but you don’t need to be an SEO expert or spend a fortune to implement or maintain them.
1. Identify Keywords: Your property’s best keywords fit a formula; what I call the ABCDs of quality hospitality industry keywords:
• Place. Where are you located? Include your city, state, region, county or any common synonym, like “Napa wine country.”
• Class of Lodging. Define your lodging type (e.g., hotel, inn, B&B, resort, spa).
• Adjectives. Use a combination of logical adjectives guests use when performing specific searches such as luxury, cheap, pet friendly, family, exotic, LGBT friendly.
• Anchor Nouns. Include local points of interest that draw travelers, such as universities, convention spaces, and seasonal events. You know these local points intrinsically, so trust your own expertise!
2. Write Basic Content: Your staff or freelance writer can easily generate property descriptions that include your keywords. Based on our internal research, we know travelers spend the majority of their time online looking at room details, so be sure to have engaging descriptions and clear, quality photos. Eliminating an agency in this step alone allows you to redirect your budget into measurable marketing efforts that drive traffic to your website.
3. Use a best practice information architecture: Don’t reinvent the wheel! Lodging website best practices are well understood by any experienced agency. Don’t have them build “a unique website for your property” — that’s agency speak for “we’re going to create a lot of billable hours for custom work.” Instead, find a vendor that can get you up and running quickly with almost no customization by re-using their existing infrastructure.

4. Don’t Buy Backlinks: Another ineffective tactic agencies often recommend to hoteliers is the purchase of backlinks (an incoming link to your website from another). This strategy is expensive and can actually hurt your ranking because Google recognizes purchased backlinks and may penalize you for having them. For backlinks to have a positive impact on your Google search ranking, they must come from respected, high-traffic websites (e.g., notable blogs or online media) that are acquired naturally and not purchased.

Better Investments
So, if you’re not wasting money moving up on Google searches, what should hoteliers focus on? Direct your online marketing activities toward those that drive traffic, engagement and conversions; these are the key performance indices that lead to success. Below are several options to investigate for your property.
1. SEM, not SEO: Search Engine Marketing (SEM) is the most effective way to directly drive traffic from your property’s best targeted keywords. SEM drives direct bookings from your web, mobile and social channels and is always measureable because you can see which ads are producing traffic and bookings. SEM gives you immediate results, unlike SEO where you never have any real sense of what specific investments led to your increase or decrease in traffic.

2. Mobile-Optimized Website: Hotel discovery and reservations are rapidly increasing on mobile devices, and many expect up to 50% of all online traffic to come from mobile users by 2014. All hotel websites must be optimized for easy viewing on smart phones, so that mobile consumers have an engaging experience that encourages direct bookings.

3. Social Media: Facebook has proven to be a valuable online marketing tool for hotels. If you haven’t started yet, now is the time to build your social presence and engage with your guests on Facebook because Google also looks at your property’s “social graph” when deciding your ranking. Word-of-mouth recommendations on Facebook also help to increase traffic to your website.

Yes, basic SEO plays a role in making hotel websites discoverable by Google, but the time has come to stop being obsessed about it. Our advice: Just walk away! Instead, spend your money on investments that offer 100% transparent ROI analysis. You’ll sleep better at night, worry less, and book more rooms. That’s no B.S.

Forest Key is the founder and CEO of buuteeq, innovator of the world’s first Cloud DMS (Digital Marketing System) for hotels, which includes a content management system, hotel web design, mobile and social digital marketing, online reservations and integrated business intelligence. Learn more at www.buuteeq.com


Articles - 04-’12: Major markets enjoy the benefits of raising rates

13 Apr, 2012By: Robert Mandelbaum

   


 

 

Rising occupancy levels will enable hotel managers in the nation’s major markets to significantly raise their room rates in 2012. The average daily room rate for hotels in the 50 metro areas for which PKF Hospitality Research prepares a Hotel Horizons fore- cast is projected to increase 5.3 percent in 2012. This compares to an ADR increase of just 2.7 percent for all other U.S. hotels located outside of these 50 markets. Favorable supply and demand conditions in the large metro areas during 2010 and 2011 have set the stage for the strong 2012 ADR forecast.

Supply
The impact of the lack of financing that started to choke the development pipeline in 2008 became evident in 2011. According to Smith Travel Research, the supply of hotel rooms in the nation’s major markets increased by just 0.8 percent in 2011. This is less than half the long-run average annual increase in supply, and the lowest year-over-year growth rate since 1995.

Of the 50 cities in the Horizons universe, only six markets are projected to see their lodging inventory increase by more than 2.0 percent in 2012. New Orleans is forecast to experience the greatest increase in supply (4.9 percent) because of the residual impact of the re-opening of the 1,193 room Hyatt Regency in the fall of 2011.

Conversely, PKF-HR expects a reduction in the room count in eight metro areas during 2012. In several market areas, we are observing the temporary closing of hotels that have recently been purchased and are scheduled for major renovations. The upgrades in facilities and services are designed to reposition these properties in the marketplace upon reopening.

Demand
Concurrent with the lack of new supply has been a surge in demand in the major lodging markets. In previous articles we have documented the strong recovery of the nation’s coastal and gateway cities from the depths of the 2009 recession. This has helped to buoy the overall average growth in demand for all 50 Horizons markets. During the past two years, lodging demand in the nation’s major metro areas has increased a cumulative 14.9 percent.

Lodging demand in the major markets is forecast to increase by 2.5 percent in 2012. New Orleans and Miami are leading demand growth. Special events and a strong convention calendar are driving the demand for hotel rooms in New Orleans, while the growing economy in Brazil is stimulating significant levels of visitation to Miami.

Occupancy
Relative to 2010 and 2011, the 2.5-percent demand growth rate forecast for 2012 looks small. However, the overall occupancy level for the 50 major lodging markets is projected to reach 66.3 percent during the year. This is nearly one percentage point above the 65.4-percent long-run average occupancy level as reported by STR. In fact, 28 of the 50 cities in our Hotel Horizons universe are forecast to exceed their long- run average occupancy level in 2012.

ADR
With occupancy levels in so many cities expected to exceed the long-run average, we are seeing operators increase rates. ADR for the largest hotel markets is forecast to rise 5.3 percent in 2012, almost twice the STR long-run average of 2.8 percent, and 3.2 percentage points above the pace of inflation.

ADR is forecast to grow in excess of 8.0 percent during 2012 in four of the 50 Horizons markets. With occupancy levels nearing or exceeding the 80 percent mark in San Francisco, Miami and Oahu, property managers in these cites certainly posses the leverage to push room rates. We also expect New Orleans hotels to benefit from premium pricing during their special events and achieve an annual ADR increase of 8.6 percent.

High development costs, zoning and scarcity of affordable capital typically impede development in larger metro areas. These factors will continue to limit the amount of new competition. With occupancies approaching all-time highs, PKF-HR forecasts major market ADR will continue to grow in excess of 5.0 percent through 2015.



Articles - 04_12: The TravelClick Perspective – April Newsletter

Current Market Overview

RaoThe occupancy outlook for March 2012 through the end of the year shows a year-over-year increase of 6.2% for the top 25 markets based on group commitments and transient reservations on the books as of early March. Based on forward looking reservations on the books, the average daily rate (ADR) for the same period is ahead by 7.1% as of the same time last year. These year-over-year increases in demand and ADR reflect a continuing positive outlook for 2012.

 

For the top 25 markets, the group segment occupancy is up 6.3% compared to the same time last year and transient segment occupancy is up 6.1%. It is worth noting that, about 80% of the transient segment bookings are for March 2012 through May 2012 and the remaining 20% for the rest of the year. Within the transient segment, occupancy for business customers (customers booking weekday retail and negotiated rates) increased 5.9% compared to same time last year. Occupancy for leisure customers (customers booking discount and qualified rates) increased 5.4% compared to the same time a year ago.

 

For the second quarter of 2012, overall committed occupancy is up 5.4% year-over-year for the top 25 markets. This is led by the transient segment which is up 8.1%. Committed occupancy for the group segment is up 4.4% compared to the same time last year. ADR is 7.7% ahead compared to the same time last year. Based on current bookings, the top 25 markets are showing strong revenue per available room (RevPAR) year-over-year increases of 12.2%, 19.1%, and 23.3% for the months of April, May, and June respectively.

 

Source and Destination Marketing

 

Business on the books so far indicates a strong outlook for hotel occupancy over the upcoming months. It is also encouraging that the positive outlook is for group, business, and leisure segments of business. However, a strong market outlook does not always translate to good performance for the individual hotel or the portfolio of hotels you are directly responsible for. Also, not all markets may be the beneficiaries of increased demand.

Hoteliers and destination marketers seeking to drive demand to their respective properties and markets can benefit by understanding where the travelers are coming from. Strong source markets for your destination can yield excellent response to campaigns and, other desirable source markets can be developed through targeted marketing. Key requirements for effective marketing campaigns are – targeting campaigns based on where travelers are coming from (or not coming from) and measuring the results of the campaigns. A systematic approach that is based on these key requirements can ensure that marketing dollars are prioritized to address the right source/destination markets and ensure the best possible return on the marketing investment.

 

The following table shows the top 10 source markets for travelers and a sub-set of their destinations.

 

TravelClick Performance Recap February 2012

 

A matrix of source and destination markets for historical and future arrival periods, such as the above, provides us with key insights on where travelers are coming from. In order to drive demand and share, each destination has source markets that can be further developed (e.g. circled in red) and source markets that may support further penetration (e.g. circled in black). Deeper analysis can provide further insights on weekend vs weekday, LOS, customer segment, and specific properties to target very specific results.

 

Moving the needle on thousands of room nights can be a significant performance driver and targeted marketing campaigns can help you achieve that.

 

Performance Summary

 

The chart below shows the year-over-year position by market of committed occupancy, reserved occupancy, ADR, and RevPAR, based on business on the books for the future 12 months. Committed occupancy is group blocks plus transient reservations. Reserved occupancy, ADR, and RevPAR are based only on reservations (group pickup and transient reservations). Shades of green indicate performance better than the market average. Shades of orange/red indicate performance worse than the market average.

 

Performance Summary

 

About TravelClick

 

TravelClick (www.TravelClick.com) is a leading provider of profitable revenue generating solutions for hoteliers worldwide. TravelClick offers hotels world-class reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, we help more than 30,000 hotel clients in over 140 countries drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape. TravelClick has offices in Atlanta, Barcelona, Chicago, Dubai, Hong Kong, Houston, London, Melbourne, New York, Orlando, Shanghai, Singapore and Tokyo. Follow us on www.twitter.com/TravelClick and www.facebook.com/TravelClick

 

Information in this newsletter covers the top 25 markets in North America and is based on data supplied by brands participating in TravelClick's MarketVision Demand Position reporting.



Articles - 04_12: Flash Sale Sites Lose Popularity with Hoteliers

Flash Sale Sites Lose Popularity with Hoteliers
Date: 2012-03-29
TravelClick survey shows dissatisfaction with group discount model
Hoteliers across Europe are yet to be convinced of the value of group discount websites as a way of filling empty rooms.

Flash sale websites such as Groupon and Living Social divide opinion when it comes to driving business with only 27% of properties claiming it as a sales tactic they would repeat, according to a survey by leading hotel market intelligence firm TravelClick.

A further 33% of hoteliers claimed they would not use flash sale sites, while 17% said they had tried group discounting once but would never do it again.

The survey, conducted amongst almost 400 chain and independent properties in mainland Europe and the UK, revealed five main reasons why hotels were unhappy with the group sale experience. These were:

- Did not make enough revenue per room

- Gave up too much revenue to the sale site

- Deal wasn’t as successful as expected

- Failed to see any repeat business, and

- Did not attract the right calibre of customer

“Group discount websites are a real success story and have grown incredibly quickly, but it seems word has spread in the accommodation sector that they don’t always deliver the results that hotels are anticipating,” explained Jan Tissera, President, TravelClick International.

“Anecdotal evidence has indicated that hotels are also concerned that a large percentage of the customers who book had actually stayed with them before and cannot be ‘up-sold’, which discourages incremental business.”

Hotels reported a number of reasons* that featured in their decision to consider flash sale sites, with increasing off-season occupancy (70%) and raising the property’s profile (60%) leading the way. Reaching a new demographic (35%) and keeping up with competition (24%) were also mentioned.

Of the flash sale sites, Groupon was used the most (60%), ahead of Living Social (28%) and JetSetter (15%).