Cornell Center for Hospitality Research Examines Daily Deals and Sustainability Issues - 0 views
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A survey of nearly 200 international hotel operators found generally favorable results for those that had offered a daily deal, also known as a flash deal, according to a study posted by the Cornell Center for Hospitality Research.
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Piccoli and Dev found that Groupon and LivingSocial were the two sites used most heavily by these respondents, and their top reasons for offering a deal were branding, customer acquisition, and boosting occupancy in shoulder periods. Ironically, the hotels that were avoiding daily deals were especially concerned about compromising brand standards.
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David Jerome, senior vice president of corporate responsibility at InterContinental Hotels Group, three critical myths are (1) that "green" is expensive, when in fact sustainable practices save money; (2) guests do not care about sustainability, when in fact many guests and group planners specifically look for "green" practices; and (3) hospitality firms can wait to implement sustainability programs, when in fact waiting is costing them both money and business.
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This article comments on the perceived effectiveness of daily "flash" deals distributed through the internet to provoke the usage of services of a hospitality enterprise. It also addresses current industry challenges hotels face with regards to sustainability and corporate social responsibility. The first Cornell study surveyed approximately two hundred international hotels. The results showed half of the hotels have used the e-Marketing "flash" deals technique while the other half abstain siting concerns of brand reputation. However the issue of dissatisfaction from those hotels who use daily deals is also prevalent. The conductors of the study recommend those who use the deals to "start small," clearly define the reason for the deal and examine every aspect of the deal, including limitations, to increase ROI and satisfaction. If the deals are tailored to fit both the hotel and guests' needs they should attract and retain customers. The roundtable discussion then dives into an important branding issue of CSR. It highlights common misconceptions related to sustainability such as going "green" being being costly, guests not appreciating sustainable efforts, and the "wait and see" approach being smart for implementation. With education and communication the hospitality industry can inform their internal and external customers of their sustainable business practices and increase customer acquisition. Rather than being reactive, businesses should be proactive and concentrate on their "long-term brand focus."