Tuesday, July 19, 2011

It's A Crazy World

Release

Timothy O'Neil-Dunne over at Tnooz asks if the coupon craze is benign or evil and points out some inconsistencies in a recent study that's being touted as proof that it's all worthwhile.

What do I think?

I think discounting has its place. Some inns really need the cash, others are outright desperate for the cash. Some new inns just want to get their name out there.

And there's one thing you can't argue about with the coupon craze. It does get your inn's name out there - and that has value on its own.

For inns hoping to attract loyal guests who will be willing to pay full price in the future, well, it's a bit more hit and miss. Eroding ADR is never a useful instrument for a healthy inn, in my humble opinion.

The coupon craze will be with us for the near future as savvy guests looks for every possible way to stretch limited dollars.

Whether or not that's a good thing for the inns hosting those guests remains to be seen. Every innkeeper considering giving rooms away, should know just what they're getting in return.

And what they're losing.