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Hospitality Branding$
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Chekitan S. Dev

Print publication date: 2012

Print ISBN-13: 9780801452031

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801452031.001.0001

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Branding and the Internet

Branding and the Internet

(p.21) Chapter Three Branding and the Internet
Hospitality Branding

Chekitan S. Dev

Cornell University Press

This chapter focuses on the use of flash sale and daily deal sites in the hospitality industry. It reports on a study based on a survey of relevant practices in the global hotel industry that examines flash sales strategies and approaches. The study divided flash sales into daily deal sites, such as Groupon and LivingSocial, and private sales sites, led by Gilt Groupe, Rue La La, HauteLook, and Ideeli. Flash sales typically offer customers promotions of short duration that provide dramatic savings—usually contingent on achieving a threshold of customers accepting the proposed deal. In contrast, private sales sites require customers to sign up for or “enroll” in a program, usually with no fee or payment required, and receive regular e-mail notices about time-limited discount offers and promotions. The study found that hotel brands that used flash sales did well. To maximize the benefits of flash or private sales, brands should balance repurchase potential against margin potential. Evaluating a property on these two dimensions better frames the value proposition offered by such deals. Brands that are unable to convert customers from flash sales deals into returning guests must manage deal margins carefully and pursue cross-selling and up-selling opportunities to on-property guests.

Keywords:   hospitality industry, hotel industry, online marketing, flash sales, daily deal sites, brand promotion, brand marketing, cross-selling, up-selling

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