Tue 26 Apr 2011
Yes, Groupon & Coupon Publisher sites are destroying your business.
Posted by Michael Hraba under hotel management, hotel news, Hotel Sales, Management Philosophy, revenue management, Social Media
1,564 views | [17] Comments
To celebrate Facebook’s Deals going live…. it’s time to comment on the coupon craze. And craze it is…. it’s captured our attention to no end. Not being fully versed with the Facebook model (I will fence sit until I know more), I will say one thing about these coupon sites in relation to your hotel, restaurant, or brand: *DO NOT DO THEM*.
The power of Groupon’s success has surely been due to the happy consumers rambling on about the score they just made. You can’t go anywhere and not see it. The crisis of perception is that everyone is beside themselves with how “cool” coupon sites are, but only regard them from the perspective of being a consumer. Stop being selfish, and think about these poor businesses. Everyone seems to be in a mindless consumer mindset when they consider them, and especially when they sign on to participate in them; all the proselytizers are consumer advocates or discounters. I don’t know one thoughtful business person that finds them to be anything but frightening, even if deemed necessary (and in hospitality, they never are necessary). They can surely bring business into an operation with low to no overhead, huge margins, or zero variable operational costs…. but to businesses like hotels, it’s a losing proposition. Please, check your giddiness at the door – and hope these coupon publishers are a fad, because if they are not we are in big trouble. Whether you scored a good deal on Living Social is moot, so put on your business acumen hat… and let’s explore! This post is meant to be a simple, accessible cautionary tale to Hoteliers and the like. I am not covering entirely new ground. But, I rather have something for us to refer to than having to explain my dour skepticism to each person incredulous as to how I am “missing the biggest thing ever”.
In fact, I wouldn’t mind being known as that one guy that stopped the entire hospitality industry from participating in any form of online coupon site. At least, realize the impacts.
Search “Is Groupon Killing” in Google, or simply click this link.

