The study, “Hotel Daily Deals: Insights from Asian Consumers,” by Sheryl E. Kimes and Chekitan S. Dev, surveyed hotel guests in five Asian nations. While the study found that the daily deals are popular, the researchers found that frequent guests in many countries take advantage of the discounts offered in daily deals, thus confirming concerns of cannibalization. The study, which was funded by the Institute on Asian Consumer Insight, is available from the CHR at no charge.
Kimes and Dev, who are both professors at the Cornell School of Hotel Administration, surveyed hotel guests in China, India, Indonesia, Korea, and Japan. “Although we found evidence of cannibalization, our respondents from several of the nations said that they took the opportunity of the flash sale to spend more money than usual during their hotel stay,” said Kimes. “Additionally, these guests were happy to recommend the hotel to their friends. So, we conclude that hotels may come out ahead on balance.”
The study also found that guests who used a flash sale had the same loyalty levels as those who did not use such offers. Most respondents said they would return to the hotel at full price in the future. Thus, the study concluded that if the deals are structured correctly, the hotel can gain future business.
The researchers also noted differences among respondents from different nations. The flash sales were more popular in China and India than in Korea, Indonesia, and Japan, for instance, and guests in China and India were also far more likely to share information about their hotel stay with friends and relatives.
A unit of the Cornell School of Hotel Administration, The Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the center's 76 corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial and operating practices. To learn more about the center and its projects, visit www.chr.cornell.edu.
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