tourism conference presentation
DESCRIPTION
A presentation on discounting and the hospitality, travel and tourism sector. The benefits, challenges and dangers of discounting through discount sites. A practical guide to best practice and securing profit for hotels, attractions, restaurants. This presentation was made at the Tourism Society Conference 2012.TRANSCRIPT
Discounting – a route to profit?
Petra ClaytonManaging Director
Custard Communications
Tourism Society Conference12th July 2012
The Changing Customer?
© 2012 Custard Communications. All Rights Reserved
What do customers need?
• Customers are looking for transparency of deals and simplicity of user experience
• Always on the go – we need mobile interaction
• Customers want to believe they have received the best deal
© 2012 Custard Communications. All Rights Reserved
• 70% of LivingSocial escapes customers indicated they weren’t actively looking to travel when they purchased their escape.
• A third of us feel a great sense of pride after getting a good deal and will share success with friends and colleagues.
© 2012 Custard Communications. All Rights Reserved
Breeding the Voucher Vampire
• In the past 12 months 10 million Britons used an online savings code.
• 1 of the 5 top hotel search terms searched in 2011 was ‘Cheap hotels in London’.
• More than one in five of us won’t go to a restaurant unless it’s offering a discount
• 60% of us have ‘discount-dined’ in the past six months
Creating Demand or Diluting Brand
© 2012 Custard Communications. All Rights Reserved
Why discount?
• 70% - boost off season occupancy
• 60% - raise profile
• 35% - reach new demographic
• 24% - to keep up with competition
© 2012 Custard Communications. All Rights Reserved
Discounting In Practice
£200
• Two night stay with dinner/bed/breakfast
£100
• Provide discount for site – 50%
£50
• Revenue share with site – 50%
© 2012 Custard Communications. All Rights Reserved
Does it work?
• 27% of properties claim discount sites are a sales tactic they would repeat
• 33% of hoteliers would not use ‘flash sale’ sites
• 17% have tried group discounting once but would never do it again
© 2012 Custard Communications. All Rights Reserved
The Dangers…
• Diluting your brand• Incremental business– Converting existing customers to deals
• No profit short-term• Cash flow• Dialogue on your behalf
© 2012 Custard Communications. All Rights Reserved
What do hotels say?
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
Did not attract the right calibre of customer
© 2012 Custard Communications. All Rights Reserved
Are there any positives?
• Exposure to millions of individuals• Brand awareness• Promotion of key facilities / attributes• Platform for key developments / launches• Boost low period bookings• Attract new markets
© 2012 Custard Communications. All Rights Reserved
Discount websites – top tips
• Pick the right partner to suit your brand• Your margins will be affected – focus on
upselling and creating loyalty• Discounting is a short-term tactic not a long-
term strategy – short sharp burst• Deliver the best you can
© 2012 Custard Communications. All Rights Reserved
Not going the discount site route?
• Take control of your hotel’s online presence• Assess strengths and weaknesses across
multiple channels• Inspiring content will inspire purchases• Be creative with offers, not reliant on
monetary discounts• Market reductions effectively
© 2012 Custard Communications. All Rights Reserved
• Provide a deal that is simple• Give customers something they regard as
highly valuable• Guarantee ‘best price’ by booking direct
through your website• Ensure your website is mobile friendly• Communicate to your database!
www.custardcommunications.com/love-loyalty