Cyber Sales: YAY or NAY?
Consider these 5 things when outweighing the pros and cons of running a Black Friday or Cyber Monday sale for your hotel.
The travel and hospitality industry is no exception in a world where digital transformation continues to reshape our lives. Travelers today are not only looking for comfort and luxury during their vacations but also for the best deals and discounts. In this post, we'll explore how Black Friday and Cyber Monday sales are gaining popularity among the travel industry and how hoteliers grapple with the decision to participate in these online holiday sales.
The Digital Age of Travel
The advent of the digital age has revolutionized the way we plan and book our holidays. Today, travelers have access to an array of tools and platforms, allowing them to research and compare options effortlessly. They can scour reviews, interact with other travelers on social media, and take advantage of the best deals available at the click of a button. This digital transformation has created a well-informed and cost-conscious traveler, always on the lookout for value.
Cyber Monday: A Win-Win for Travelers
For travelers, Black Friday and Cyber Monday represent a golden opportunity to score significant discounts on more than just retail shops but also for flights, accommodations, and vacation packages. They can plan their dream getaways at a fraction of the regular price, making travel more accessible to a broader audience. The convenience of booking online and securing fantastic deals is a major draw for travelers looking to make the most of their budget.
OTA Adoption of Cyber Sales
With this digital transformation, online presence is crucial for hotels to be found by new patrons around the world. This may include proper website maintenance, actively posting on social media, paid media efforts, email marketing, and often participating on OTA (Online Travel Agency) platforms. While hotels with a good digital marketing strategy may have traction in getting in front of new or returning travelers, OTAs can increase exposure tremendously if hotel profiles are managed properly. When it comes to holiday cyber sales, OTAs give hoteliers the option to participate in their sale or not. Those who choose not to participate may lose out on exposure while those who do are often featured more prominently so that travelers who are looking for the best deal this time of year can find what they are looking for easily.
The Hoteliers' Dilemma
While travelers eagerly anticipate Black Friday and Cyber Monday sales, hoteliers find themselves in a tricky position. They need to decide whether or not participating in these sales aligns with their brand, long-term goals, and profitability. Here are 5 factors to think about when considering running a holiday cyber sale:
Brand Image:
Hoteliers must weigh the potential short-term gains from participating in cyber sales against the impact on their brand image. Discounting rooms too heavily might convey an impression of desperation or devalue the brand in the eyes of customers.
Revenue and Profitability:
Hoteliers need to calculate the potential return on investment. They need to consider whether the revenue generated during a holiday cyber sale will offset the discounts offered and any additional marketing expenses.
Occupancy Levels:
Black Friday and Cyber Monday sales can be beneficial during low seasons when hotels struggle to fill their rooms. It's a strategic way to boost occupancy rates and generate revenue during downtimes.
Target Audience:
Hoteliers must identify their target audience and understand whether these travelers are likely to participate in holiday cyber sales. Knowing your clientele and their preferences is crucial when making the decision.
Competition:
Keeping an eye on what your competitors are doing is essential. If rival hotels are participating in cyber sales, it may be necessary to do the same to stay competitive.
Making the Decision
The decision to participate in Black Friday and Cyber Monday sales ultimately depends on a hotelier's unique circumstances, goals, and business strategy. Some hotels may choose to avoid deep discounts and focus on value-added offerings, such as complimentary amenities, to attract travelers. Others may embrace cyber sales as a way to increase brand visibility and boost occupancy.
In today's digital age, cyber sales continue to gain popularity among travelers as they search for the best deals on their dream vacations. While these sales offer significant benefits to travelers, hoteliers face a complex decision-making process. They must carefully evaluate whether participating in cyber sales aligns with their brand, profitability, and long-term goals. As the travel industry continues to evolve, hoteliers must adapt and find innovative ways to meet the changing needs and expectations of their customers, all while keeping an eye on the bottom line. Ultimately, the right approach to cyber sales will vary from one hotel to another, but staying informed about industry trends and consumer preferences will be key to success in this digital era of travel.
ABOUT PREMIÈRE ADVISORY GROUP
Première Advisory Group is a trusted commercial strategy advisory group for the hospitality industry. We help independent and boutique hotels around the globe drive profitability through a unique approach that combines experts in Distribution & Sales, Revenue Management, Digital Marketing, and Hotel Technology, so they can maximize revenue and increase market share. With offices located in New York and Paris, Première Advisory Group supports over 125 independent and boutique hotels across the globe and was awarded Top Revenue Management Company by Travel and Hospitality Tech Outlook.
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