Motivations, Limitations and Revenue Management Implications of Daily Deal OfferingsWinnie O’Grady*, Paul Rouse and Nancy Cao
The University of Auckland, New Zealand
- *Corresponding Author:
- Winnie O’Grady
The University of Auckland
Private Bag 92019, Auckland
1142, New Zealand
Tel: 649 373 7599, Extension 84838
E-mail: [email protected]
Received Date: June 01, 2014; Accepted Date: June 28, 2014; Published Date: July 14, 2014
Citation: O’Grady W, Rouse P, Cao N (2014) Motivations, Limitations and Revenue Management Implications of Daily Deal Offerings. J Tourism Hospit 3:125. doi: 10.4172/2167-0269.1000125
Copyright: © 2014 O’Grady W, 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.
Offering daily deals has become a popular marketing approach in recent years. This research investigates whether daily deals add value to suppliers businesses. We investigate motivations for daily deals, revenue management implications and limitations of such, and differences between conventional marketing approaches and daily deal offerings. The research method included questionnaires, interviews, and direct collection of deal data via the internet. We find that daily deals can add value by informing better revenue management practices. Daily deals can be utilized to improve pricing, manage capacity and develop loyalty. We also find that the demand curve for daily deals is elastic, which reflects the bargain seeking behaviour of buyers. Furthermore, the demand for certain deals is found to be less elastic than others, suggesting that suppliers can potentially offer deals at higher prices to yield more revenue.