Advantages and Disadvantages of Using Flash Sales in the Lodging IndustryBerezina K1* and Semrad K2
- *Corresponding Author:
- Berezina K
University of South Florida
Sarasota- Manatee, USA
Tel: +1 941-359-4320
E-mail: [email protected]
Received Date: July 10, 2015 Accepted Date: July 30, 2015 Published Date: August 08, 2015
Citation: Berezina K, Semrad K (2015) Advantages and Disadvantages of Using Flash Sales in the Lodging Industry. J Tourism Hospit 4:161. doi:10.4172/2167-0269.1000161
Copyright: © 2015 Berezina K, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Flash sales websites (e.g., Groupon, LivingSocial) are shopping intermediaries that provide a promotional means to market and distribute goods and services at deeply discounted prices. The purpose of this study is to provide a preliminary assessment of the advantages and disadvantages of hotel room inventory distribution by way of flash sales websites. Forty-six industry professionals were interviewed regarding their experience with flash sales promotions. The results of the study revealed that plausible advantages of using flash sales included filling immediate occupancy needs, increasing exposure, reaching new customer market segments, and inducing first time customer trials. Potential disadvantages of using flash sales for hotel room inventory distribution may fall in the categories of facing high distribution costs, violating rate parity, and experiencing negative impacts on hotel brand and revenue generation. Overall, hotel managers reported that hotel flash sales may serve as an effective distribution and marketing channel when clearly aligned with hotel’s goals and needs.