November 22, 2012

Strategies to capture flash-sale hotel guests

While many debate whether flash-sale sites create enough of a return for hotels, successful operators are focused on capturing value-driven customers and ensuring they return. It’s a bonus if the repeat customer books direct the second time around.

In a recent survey commissioned by LivingSocial Escapes, 70% of customers responded that before seeing a LivingSocial Escapes promotion they didn’t intend to travel. More than 80% who purchased a roomnight from Living Social had not been to that specific property before.

To Dave Madden, GM of LivingSocial Escapes, that signifies that flash-sale sites drive incremental demand. “We’re putting something more than just a roomnight in front of people who never knew this place existed and try to inspire them to come,” Madden told during a break at the PhoCusWright Conference last week. “Would those people have taken a trip? Maybe, maybe not. But they weren’t in market.”

Madden said the most successful hoteliers are the ones who can convert consumers into repeat, long-term guests.

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