TTG Toolkit TECHNOLOGY
Deal or no deal?
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This week in your toolkit Get Ahead
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Mystery shopper Ayrshire agents compete for a flight- only
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booking p34
he numbers that get batted around by the likes of Groupon Getaways (15 million UK subscribers) and LivingSocial Escapes (a million room nights sold in its first 14 months) are surely the stuff of hoteliers’ dreams. A high street agent may sigh in
T
relief that at least they’re only appealing to time-sapping bargain- hunters – except they’re not. The focus of the daily deals industry, which was only born in the US in 2008 but today boasts 80 UK brands, is now firmly placed on consumers with the discretionary income for impulse travel purchases, and therefore products that look increasingly like “proper holidays”. In fact, travel services within the social commerce model want to shed their association with “deals” altogether.
Dispensing inspiration Groupon UK co-managing director Roy Manga says: “Social commerce can no longer be seen as a passing phenomenon, and although it remains as the trigger to purchase, the discount is no longer the key essence of the deal.” The company has always claimed
Matthew Parsons 020 7921 8015
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Pippa Jacks 020 7921 8038
05.04.2012
Katherine Lawrey 020 7921 8018
Carlie Trotter 020 7921 8004
it is creating demand rather than cannibalising sales from merchants, partly based on survey results
What can mainstream travel firms learn from the rapidly-expanding sector of daily deal websites? Carlie Trotter went to the first Daily Deals Europe Summit to find out
suggesting six out of 10 Groupon purchases arise from a desire “to discover new experiences”. And maybe rather than seeing such sites as the enemy, the travel trade should aim to be equally proactive in dispensing inspiration and making “in the moment” purchases equally simple. One thing’s for sure: mainstream businesses can’t afford to rest on their laurels when these marketing powerhouses are changing the way more and more consumers think about experiencing a city or destination and the kinds of activities that constitute a talking point. Nick Stafford, general manager of LivingSocial Escapes in Europe, says: “About 15% of travel purchases are via our apps but consumers are typically thinking many months ahead; it’s about stimulating that demand in the first place through compelling editorial and quality promotions – quite the
opposite of the last-minute model.”
He adds: “While we are able to push
volume at high velocity for brands such as Four Seasons, LivingSocial Escapes also tells stories for independent or local brands that don’t have that brand equity, such as Fallowfields Country House in
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