Daily deals are double whammy
The paradox in the increasingly popular "daily deals" in the hotel business was underscored by a wide-ranging study that showed few respondents using them for promotion but almost everyone citing them as a source of repeat business.
Only 19 percent of respondents participated in "daily deal" website promotions in 2011, but of these respondents, 90 percent cited these deals as sources of repeat business.
"Furthermore, a healthy debate has begun on the value these daily deal websites provide," according to the DLA 2012 Piper Hospitality Outlook Survey.
The survey also found TripAdvisor and Expedia as the two most influential websites for travel customers.
"On the other end of the spectrum, it is interesting to note that the largest social media organizations -Facebook, Twitter and LinkedIn – are viewed by respondents as the least influential websites when it comes to travel," said Sandra Kellman, global co-chair of DLA Piper’s Hospitality and Leisure practice.
The survey had various findings, some perhaps unexpected. They included:
—The expectations of US hospitality executives have tempered, but the overwhelming majority remain bullish on the marketplace as investors look to pick up where they left off in 2011 – hunting for deals, says the DLA Piper Hospitality Outlook Survey.
That conclusion comes after a flurry of deals last year with market conditions remaining "favorable" to investment.
—Business travel is expected to increase for the second consecutive year, the survey found.
—The survey also said executives would be keeping a "watchful" eye on the US government in Washington amid the election-year showdown for the White House.
Taking a look at the operational side, the emergence of "daily deal" websites has become a polarizing issue for the US hospitality industry.
"While few respondents reported using these sites for promotions, nearly all those who did cited them as a source of repeat business. Furthermore, a healthy debate has begun on the value these daily deal websites provide," the survey said.
By David Wilkening
David
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