Are daily deals profitable for hotels, or a waste of time? We go over the facts to find the answer.
Are daily deals profitable for hotels, or a waste of time? We go over the facts to find the answer.
Brandon: Good morning ladies and gentlemen, this is Brandon Dennis, from Cloudbeds. I’m the VP of Marketing here at Cloudbeds and I’m joined today by Alex Gaggioli, who’s our Marketing Coordinator. And he is going to be helping us with the webinar today. Today’s topic is on Daily Deals for Hotels. This is going to be a fun webinar with a lot of information. Daily deals are an interesting marketing channel that many hoteliers don’t always take advantage of. So I think this is a great opportunity for us to learn about something that we might not have known before and to add another marketing feather to our cap.
If you have any questions during this webinar, there’s a little Q & A button near the bottom of your Zoom interface, we’re broadcasting on Zoom, and feel free to just go down there, push the button and then ask a question. Alex is monitoring all of your questions as they come in and he’ll be fielding them to me during the broadcast, and then at the end we’re going to have a big Q & A session where you can ask any questions that you want about this topic. So, without further ado, let’s dive on into Daily Deals for hotels.
So one of the interesting things about this particular marketing niche is that it’s been in the news a lot, it had a lot of hype when it first become popular in 2009, 2010, and then there has been a lot of controversies, especially around Groupon, in terms of their stock valuation and how many people have been leaving the platform and so on and so forth. But there’s one thing that we should just keep in mind, and that’s that today daily deals are still a $5 billion yearly industry, if not even more than that. And this is data that we got from a BIA/Kelsey Report and also from the Motley Fool.
So, it’s a combination of all data and fairly recent data. So despite what has happened, in terms of the history of these companies, like Groupon and Living Social and Amazon Local they’re still doing fairly well, people are still going there. Groupon alone, even though it’s lost about 43% of its stock value since 2010, it still sits on $868 billion in reserves and that’s a lot of money. Now, there are a couple of predictions too.
So one of the reasons we’re going through this data right now, is because we’re trying to figure out and establish whether or not this is going to be an industry that’s going to be sticking around for a while and whether or not we should invest our time and energy into using it as a marketing channel. And so understanding the data that is going on in terms of their financials and how people are using it is important to understanding this. And that’s why we’re starting at a lot of the data. So there are a couple of predictions from both BIA/Kelsey and the Motley Fool. They predicted that consumers themselves would spend $4.2 billion a year by 2015. Now, we’ve seen…the year isn’t over yet, but we’ve seen that within the first six months of this year Groupon alone spent $1.6 billon.
That’s not even counting Living Social, that’s not even counting Amazon Local or Traveloo or any of the other daily deals website. Groupon alone…on Groupon alone, consumers spent $1.6 billion. So that puts this marketing niche well on its way to fulfilling the BIA/Kelsey predictions, meaning, that it is a very lucrative industry, people are still spending money. Now let’s talk a little bit about how hotels tend to fare on daily deal websites. And we’re going to be talking about many different property types, not just hotels.
We’ll be talking about how BnBs fare, we’ll talk about how hostels fare, based on room numbers and property type. But 68% of hotels make a profit with daily deals. This is based on a 2012 Rice University Study where they really went in-depth to check out what kind of businesses use daily deal websites and how they tend to fare. Now, there’s a wide range between the kinds of businesses that are profitable. Between 54.9% and 61.5% of businesses are actually profitable. Now, this also scales by the kind of business that you are.
At the very top, we’ve got health and beauty businesses, which are like salons and spas. Spas, they tend to be the most profitable. And the very bottom you have restaurants and bars. Only 44.2% of them make a profit. But nearing the top we do have travel and tourism which is at about 68%, which means that the majority of hospitality properties that use daily deals walk away with making a profit. Now then, this leads me to the question, “What can I do to maximize my chances of making a profit when using daily deals?” And don’t worry, we’ve got a list of tips and tricks to use later on in this webinar. We’ll be getting to that information.
So then, what’s the ultimate goal of using Daily Deals? The ultimate goal is to generate new business from new guests. One of the concerns that many critics of daily deals have used in the past, is that they’re concerned that by creating this deal, by putting a bunch of energy and money investing in a deal, and publishing it to Groupon or Living Social, that what you’re doing is, you’re undercutting your own profits because the only people who purchase a daily deal are people who would have been their own customers anyway. And we’ve found from the data that that’s not actually true. And so this leads us to this goal which is the goal is to generate new business from new guests. And if you can do that…if the business you’re getting is from new guests, then this is a very lucrative marketing channel indeed. So this breaks down into the 80/80 rule. 80% of business generated by daily deals is new and 80% of daily deal customers spend more than the deal value. And this is incredibly important because this shows us two things.
One, it shows us that we’re not undercutting our own profits, it shows us that we’re actually finding new customers who might not have found us any other way. These are customers who wouldn’t have found us on OTAs, they wouldn’t have found us on radio ads or newspaper ads or magazine ads, they wouldn’t have found us on Craigslist or anywhere else. They only found us because we decided to market our properties on Groupon or Living Social. This makes daily deals a very attractive marketing channel.
And what’s even more important than…or not necessarily more important but as important, definitely as interesting is that those customers that do come to purchase a deal 80% of them end up spending more than the value of the deal, which means that if you’re creating a deal, and to create a deal you’ve got to give away a little bit, whether you’re giving actual money away in terms of a free night stay or something like that or giving away perceived value, whatever it is you’re giving away 80% of the people who buy your deal are going to be spending more.
And you could increase this percentage by the way you upsell your customers when they get to your property. But just remember the 80/80 rule. This is really important when trying to understand how profitable daily deals can be for your business. Another interesting quality metric for daily deals is that a third of all of the guests that come to your property through daily deals end up becoming repeat customers. This is data is also from that Rice University study that was done in 2012/2013, so it’s really compelling information. And they discovered that a third of all daily deal customers, become repeat guests. And can you say that about almost any other marketing channel?
It’s really…this is especially important for hotels where repeat guests is the true health metric when trying to determine the health of your brand, when trying to determine how well a job you’ve done at promoting your brand, marketing yourself online. And repeat customers is the best way to get free business because you’re no longer having to spend money to market to them. You’ve marketed to them once and now they’ve become a repeat customer, you’ve made the investments and the investment’s going to pay off for as long as they decide to be a customer. And a third of them are going to become repeat customers from Daily Deal. Here’s another interesting tidbit and I didn’t know this until I started doing the research that I did for this presentation. But that most daily deal guests never redeem the daily deals, which is interesting.
And I don’t know if this is going to be true for the hospitality sector because this tidbit that I found, was in general. For most businesses that use daily deals, most of their customers never redeemed the deal. However, the interesting thing about this is that if you put in a lot of time and energy into creating a deal and most of your guests don’t even redeem it then you’re still pocketing the money that they spent on the deal. So if they have to pay Groupon say $80, to get this awesome deal, and then you split your money with Groupon, you get to keep the vacancy, you get to keep most of the occupancy…
I’m sorry, most of the vacancies and save those for over-bookings or for another…or for something else. This might not even be [inaudible 00:09:19] by the person who paid to come to your property, which means you can just pocket that change. It’s like using this as a marketing channel to pocket free money, which is compelling in its own right.
So let’s talk a little bit about the kinds of properties that tend to do really well. And this is what I was referring to when I was talking about beds and breakfast compared to other types of properties. And we see that there are winners and losers. Daily deals are not necessarily good for every property type. The big winners are going to be small properties and huge properties. The data shows that 60.1% of small properties that use daily deals make a profit. Now by small property, they’re defining that as any property that makes less than $100,000 gross a year. That’s a small property, according to Rice University that did this study.
Now, for large properties they went way up there, 76.7% of large properties also make a profit. Now, as a large property, they define that as a property that’s making over $5 million a year in profit. So those are two extremes, small properties, $100,000 a year or less in profits a year, to large properties, $5 million or more a year. In between, are the losers and the losers are properties who are making between $500,000 and $5 million a year. Now, these guys happen to have a smaller percentage of profitability but that doesn’t mean that if your property happens to fall within that range that you can’t turn a profit using daily deals, this is just the data. And the data shows that if you’re a small property it’s easier for you to make a profit and if you’re a larger property it’s easier for you to make a profit. But really, it’s going to be down to the strategy that you employ when creating your daily deal. If you’ve got the strategy right then regardless of the size of your property you can still use daily deals to turn a profit.
Let’s take a look at some of the criteria that’s going to help you understand when is a good time to use a daily deal and what are the aspects of a property that are going to make daily deals more compelling. Is your property new? If so, then daily deals are probably going to be a good bet. Now, the reason for this is because you don’t have any marketing presence at all. If your property is brand new, then that means you just published your website, it probably means that you don’t have a huge marketing budget to do a lot of online advertising.
It means that you’re not getting a lot of visits from search engines, it means that you might not be established on any of the online travel agencies yet. Your property is so new, you don’t have a lot of brand recognition or exposure in your area. Groupon and other daily deals are a great way to start to establish your property’s reputation. Remember from the data earlier that a third of all business you get remain sticky, they become repeat customers. So, using daily deals for a year or more, when your property is brand new, is a great way to start to establish yourself as a brand, to get brand recognition, to start generating reviews for your property online from people who purchased your deal.
It’s a great marketing strategy for new properties. If your property has little or no online presence, your property might have been around for a while, but you haven’t taken the time to invest in a web presence, you haven’t taken the time to monitor your online reviews, or you’re not using the channel manager to get your property’s inventory onto other online travel agencies. If you have little online presence then using Daily Deals may be a useful tool would for jump-starting your online presence.
Because what happens is people are going to pull out their phone, they’re going to see your daily deal, they’re going to book a daily deal, they’re going to go to your property, enjoy a weekend, and then they’re going to go and give you a nice review. You get 5 to 10 of those a month, over the span of a year, you’re going to be getting a lot of chatter online. People talking about you. And then, of course, you can use it during the slow seasons. And what works for the property who only use daily deals during the slow seasons, when they otherwise are going to have a lot of empty rooms. And they used daily deals quite expertly, they were able to completely fill their hotel just with people who were purchasing a deal on Groupon or Living Social or Amazon Local. And they managed to wield this marketing tool quite masterfully.
Here are a couple of tips. So we’ve established the daily deals can be a lucrative avenue for hotels but now, we have to think about the deal. This brings us back to the crafting of the deal. The deal that you create, is the most important part of this aspect because whether or not your property is going to be profitable or not profitable, comes down to the deal that you create. The way this often works is, Groupon or Living Social or Amazon Local they’ll come up to you and they’ll say, “Hey, awesome property number one, we want to do a deal with you,” or maybe you’ll reach out to them. Either way, you’re in talks with Groupon and they want to make a deal.
They’re going to say, “Okay, give us three nights free if your guests spend $25,” or something like that. Now, that’s crazy, you’re giving away a lot and they don’t care because they want to offer the best deal possible. You see the psychology there? The Daily Deal websites are not necessarily in it, now they want you to be profitable because if you’re profitable then you’ll keep coming back. And many times, in my personal experience when I’ve worked with some salespeople from these places the individual salesperson is more interested in getting you as a customer because that way they get their commission because many of these salespeople who work at daily deal websites work on commission.
So sometimes in their ambition they try to get the best deals from you to make your deal more compelling for their web visitors at the expense of you making a profit and becoming a future repeat customer. That’s just what I’ve experienced in person working with daily deals websites. So you need to ask yourself, you need to sit down and take a look at the numbers and say, “What is that line of profitability that before…that if I go below that line, then there’s no way that I’m going to ever make a profit with this, and I’ losing money.”
Figure out what the line is and then know that when you go into the negotiating table and you sit down to talk with the Groupon salespeoples and try to hash out a deal. When you’re creating a deal make sure that the deal is not you just giving everything away, because if you do that then it’s not going to become profitable and you may be tempted to not give guests the best experience possible if they’ve come from Groupon. I’ve also seen that but we’ll get to that in a second. Know when to say no.
If your profit margin is already so small that you just have no room to work, you just can’t create or craft a compelling deal, because you don’t have enough of a profit margin to do so, then that’s probably a good reason to say no, to just say, “You know what, Groupon, Living Social, these daily deal websites are probably not the best bet for me.” If you can’t give a deep discount or you can’t find ways to increase the perceived value of a stay at your property, then it may not be useful for you to do a deal. Here’s a great question that you can ask yourself. Can you sacrifice immediate profits for brand-building for building your customer base?
Because as we learned earlier, a third of all business that you get from daily deals remains sticky. And so if you understand that metric and you understand what you can sacrifice, then you can do the math and you can project into the future. And you can say, “Okay, if I can sacrifice X amount of my excess marketing budget every single month with the expectation that X% of the customers who come in are going to be repeat customers, then what can I expect at the end of the year? How many new customers will I have achieved, will I have earned by using daily deals and what’s it going to cost me to get that in terms of the discount that I’m going to get. It comes down to sitting down, running the math, pulling up an Excel spreadsheet, just doing the data and then figuring it out.
Number two, craft your deal with care. I did just touch on this and I might have gone a little ahead of myself. But craft your deal with care. You definitely don’t want to give away everything in the boat. You want to make sure that what you’re giving, you can afford or that you’ve come up with an idea to give away something that adds increased value perception without costing you a lot of money. So add contingencies to your deal. Make sure that yes…that your deal says, “Yes, I’m giving away this great experience, but in order to accept this deal you have to meet qualification X.” So maybe, in order to get the deal they have to purchase two or more nights or something like that. That way, you’re getting a little bit more revenue out of them in order for them to experience the deal. But here’s a major point that I think, that I want to emphasize here. This is going to be a major takeaway of this webinar, is that you don’t necessarily have to give away your money or give away your product to make a compelling deal, especially when it comes to hospitality and tourism. Sometimes you can give away something that increases your perceived value, something that makes the stay at your property just look more appealing and it doesn’t cost you anything.
Now, I wish I had a database of all of these things that you could add, but it’s really going to have to come down to your own personal creativity because every property has a unique experience. You’ve got a unique location, your property amenities are completely unique and yours, some rooms have views, some rooms don’t. Only you know your unique property and only you can do the brainstorming necessary to figure out what increased value you can give that costs you very little but is compelling enough for somebody to plunk down $100 on a daily deal.
And there are ways you can go about doing that, whether it’s making an arrangement with a horse and carriage company near you that you’re friends with where they won’t charge you a lot and they can increase the value because you’ve got this personal arrangement or maybe you’ve got your own vineyard and you can bottle your own wine and so you can afford to give bottles of wine away for free if they purchase your deal or something like that.
Moving on to number three, rope guests into your marketing funnel. This is a great opportunity, especially if you’re a new property to create a marketing funnel, to establish an email list, to get people to like you on social media. You’re going to be getting their email addresses because they’ve becoming customers of yours. Encourage them to join you on social media, whether these are on property call-to-actions or whether you give them an email with links to your social media profiles, you can use this to pad your marketing funnel.
Add their email addresses to your email databases and then start creating some drip campaigns, start creating some email-only promotions. This is going to help you get around rate parity restrictions as well. Find ways to get them to your website. There’s a lot of data that shows that people who visit hotel websites and start to establish a familiarity there, start to gain positive brand perceptions of that property and are likely to revisit that website in the past. This also gives you the opportunity to re-market to them. If you get someone to your website you can use services like Adwords or other remarketing and retargeting ad services, to install a pixel in their browser that follows them around the Internet wherever they go. In that way, you can offer them advertising for your property to try and get them to come back. Since we already know, based on other research, that the most likely person to book a room at your property is someone who’s done so already and this is a general rule, in terms of e-commerce as well. The most likely person to be your customer is someone who’s already your customer. We know that re-marketing is going to be a useful marketing tool. We know that people who see your brand repeatedly are going to be more likely to purchase from you. So rope them into your marketing funnel.
Next up, understand local pricing. This is also going to be an extremely important thing for making a successful deal as well. Because it doesn’t make any sense, to create an awesome, wonderful adventure package for exploring the Redwoods in California but then you price it the same way you would for a five-week ski adventure in the Himalayan Mountains. They have different costs, different locations, different things are coming to bear when it comes to where you should put your costs at. So take a look at the online travel agencies that are selling rooms in your location. What kind of deals are they doing? Because online travel agencies are doing a lot of deals too. If you go to Expedia or you go to other online travel agencies and you search for a room near your location and you scroll down, you’re going to see hotel, hotel, hotel, “Oh, book in the next 5 minutes, get this awesome daily deal.” Interesting, I wonder what they’re trying to give away.
You can take a look at the other daily deals that online travel agencies and other hotel owners and marketers have created to inspire you for your own deals, and also to give you a place where you can start setting your prices. You don’t want to be the guy who comes out with a daily deal that’s priced 50% higher than every other daily deal on the marketplace. And this is basic common sense. You want to sit down and take a look at the landscape before your make your daily deal.
This is going to help you not only price things appropriately but it’s going to give you ideas for the kinds of things that you can give away, the kinds of things that your guests or at least guests who are coming to your area, find interesting. Maybe this is going to give you a great opportunity to understand local events that are happening that you might have missed otherwise. So doing a little bit of your research, bearing in mind rate parity and agreements, finding ways to increase the perceived value of the daily deals by doing a little bit of market research beforehand is going to be a great way to have a successful deal.
Number five is be ready. And we all know why this is important. Groupon in particular has established a reputation for overwhelming businesses with the kind of response that they get. Now I don’t want you to set your expectations too high, because it really is…sometimes it’s a bit of a crap shoot. Depending on the deal that you create you may get a ton of people through your doors or no one. If you don’t make a compelling enough deal and people don’t buy it then you’re not going to get anyone there.
If you make your deal too compelling and everybody buys it, you could find hundreds of people in your lobby expecting a room all at the same time. That is a nightmare scenario and you need to be able to understand that this can happen because as soon as you publish your deal it is technically live and anybody could purchase it. So make sure that when you’re crafting your deal that you understand exactly what your hotel, what your bed and breakfast could possibly ever accommodate and then make sure that you put contingencies in place to accommodate for them.
So since they can redeem it as soon as the deal goes live maybe make a deal has a contingency that says, “Okay, this is only available for a weekend,” and then go to Groupon and say, “I only want to sell 35 of these,” have an exact number and say, “This is the hard limit, this is my stop gap, this is where it ends because I can’t accommodate any more than this.” And then, make your staff ready. If you know that a daily deal is going to be going live on a specific weekend or during a specific week and you have…you’ve done your projections and you know exactly what the best case scenario would be, if 100% of your deals are sold what is the number of people?
And 100% of them fulfill the deal and redeem it, we already know this doesn’t happen, but let’s say 100% of them did what’s the best case scenario? How many people will be walking through my doors? Figure out that number and then make sure that you have the front desk people on staff ready in case that happens. Make sure that you’ve got extra housekeeping ready to turn around rooms quickly so that you can get people into their rooms as fast as possible. So, number five is just about being prepared, having the appropriate expectations for what could possibly happen and then being prepared on your end to accommodate it when it does.
And then number six is, understanding daily deal customers, the personalities of the kinds of people who like doing daily deals. Now, I’m not denigrating people who use daily deals…I use daily deals personally myself. I just got back from a two-week long vacation to California and I used daily deals twice for two of the hotels that I booked. So I understand…I think I understand the customer base fairly well. But it divides into two different segments. On one hand, you’ve got the people who are all about the deal. They are interested in getting a rock bottom price for a hotel room. They’re less concerned about amenities, they’re less concerned about perceived value, they just want a rock bottom price. On the other hand you’ve got the folks who are more interested in the experience. They’re more interested in what they’re going to walk away with. What are they going to see that they’ve never seen before? What are they going to feel that they’ve never felt before? What are they going to be able to write in their journal when they get home or blog about because they had such an amazing time.
These guys are less sensitive to price, they’re more concerned about experience. These guys are less concerned about experience and more sensitive to price. My argument is that you want these guys not these guys. The guys who are more concerned about the price tend to be a little bit more contentious. I’ll admit that I’m actually one of those guys. I mean I do love a wonderful experience but when I’m going out and I’ve got a family and I’m gone for two weeks and I’m using daily deals to get a good hotel room, I’m kind of really concerned about the price. So I’m looking for a deal that’s really steep or that’s really cheap. I want the cheapest deal. And I’m probably not the best guy you want at your hotel because I’m going to be a little fussy and I’m going to be a little contentious. Instead, you’re going to want somebody who is more about the experience because that’s going to be more cheap for you. But instead of having to deeply discount the rooms at your property, you can put them at the same price, or put them at a price that’s only slightly less than you would normally charge but give them something that doesn’t cost you a lot, some sort of experience that you can give them that they wouldn’t get anywhere else that you don’t have to pay for, whether it’s a tour of a local winery or tickets to a museum or tickets to a sporting event or…use your creativity, use your imagination. You know your location better than anyone else, this is your property, this is your marketplace, you can come up with some really great, creative ideas to increase the perceived value of your deal so it doesn’t cost you an arm and a leg.
Number seven is practice makes perfect. We find that using some data from Rice that most successful properties who use daily deals are properties who’ve done them before. And that just makes sense because if you’ve already done a daily deal, you know the mistakes you’ve made in the past, and you won’t make those in the future, you’ll learn from them and you experiment. And you perfect. Practice makes perfect. If you don’t get it right the first time, that doesn’t necessarily mean that daily deals are not for you. It could but it just means that you need to refine your strategy a little bit.
Tweak your deals, make your deals a little bit more compelling, maybe add a few more experiences to your deals so that they have greater perceived value, maybe open it up to more people or take away some of the contingencies that made them less useful because they restricted the guests calendar in a way that most people didn’t like. Find ways to experiment with your deal to make it more lucrative and then once you get to that sweet spot, then you’ve developed a strategy that you can then rinse and repeat to increase your profitability.
So, while it is true that some properties may not do well with daily deals and there is a point where you have to learn to say no as we learned in step number one. What also is true in step number seven is that this practice makes perfect and your failure at the very beginning doesn’t necessarily mean that you can’t eventually use daily deals to patch your marketing strategy. That is the major jist of this presentation and I’d like to take your Q&As; right now, if I could. Alex, is there anyone who has had some questions so far?
Alex: There are no questions so far.
Brandon: Okay. I thought I saw a raised hand a little bit ago. Nothing on your end?
Alex: No. Well, we can discuss…we touched on it a little bit earlier about how these types of deal services are seeing a bit of decline lately and whether or not this is going to be a lucrative, marketing channel in the future. Do you want to touch on that a little bit more?
Brandon: Yeah. I…one of the reasons I wanted to do this webinar is because I don’t feel like daily deals are talked a lot about these days. They were talked a lot about in 2010, 2011 when they were a hot topic but I haven’t heard them talked a lot about in terms of hospitality. And I don’t think many hoteliers have leveraged daily deals a whole lot. So I found the topic to be fairly interesting and I have seen some hotels use them quite successfully in their marketing strategies. So I don’t suggest that this should replace your marketing strategy or even necessarily become a huge component of it, but it is something that you can do to experiment with it, certainly something to try.
I told you the story of the hotel in Seattle that I worked with that used daily deals really well. This was seen as a huge marketing coup for them. The marketing manager of this property, this was just an idea he had. They had never used daily deals before, he had no experience with it, daily deals were kind of getting a low reputation in the press, so he didn’t really didn’t know what was going to go on and then he did it and he talked with the guys at Groupon and he put together a deal.
And he tried to make it as impressive as possible and lo and behold, his entire hotel sold out that holiday weekend because he sat down and made an awesome deal. And he got a promotion and everyone at the hotel really loved it. So it was a huge coup for him and I think it’s quite possible for hotels, especially mid-size to larger independent hotels, hotels that have a little wiggle whim in their marketing budget to work with. It’s certainly something you can use, if done correctly, to improve the occupancy at your property.
Alex: Cool. And what types of deals do you find are the most popular? Is it a discounted room rate or is it a combination of different things, like you mentioned, like a free bottle of wine plus the room or a package versus just a discounted room?
Brandon: I find that packages or experiences tend to be the most successful. Now, like I said there are two types of daily deal users, the ones that are interested in the discount and the ones that are interested in the experience. Personally, I’m the guy who is interested in the discount. What stands out more to me is what kind of deal am I going to get. And as I said, I’m probably not your target audience because not only is it going to be more profitable to craft a package that gives away an experience that doesn’t cost you a lot but those kinds of deals tend to do a lot better. They tend to be…they tend to ignite the imagination of a guest. Because what you’re doing, you’re telling them a little bit of a story. There are two stories you’re telling. One is you’re going to save $50 and the other is you get to go para-sailing over the Grand Canyon. And that puts your imagination somewhere. On one hand you’re thinking, “Great, my wallet’s going to be fatter.” On the other hand, you’re thinking, “Well, I’m going to be flying, this is great.” I think this speaks to two different kinds of personalities in those two…two different personalities tend to have greater or less success on daily deal websites.
So I suggest, when you sit down to make your deal, focus less on the deep discount that you’re giving and focus more on the experience that you can offer. Try and craft a deal that ignites the imagination of the guest because that’s what he wants. If he’s looking at your deals to begin with he wants to be inspired to travel. He wants to see your deal and see the photos and read the description and go, “Wow, I can imagine myself there, I can envision myself having a wonderful time. And look at all of the amazing things that this deal is going to allow me to do.” Those are going to be the deals that are going to be the most profitable.
Alex: Awesome. Well it looks like those were the only two questions unless anyone wants to add anything right now.
Brandon: Well, we have a 30 second countdown in the back of our heads while I waste a little bit of time just talking in a nonchalant manner in front of this microphone. But thanks everybody for coming to this webinar on daily deals. It was a very interesting topic for me personally. I enjoyed doing all of the research on it. What we’ll do is we will publish this video on our website and then send out a link to it later so that you can watch the video at anytime, if you want to come back and revisit some of these points. And then if you are owning the marketing strategy at your property be sure to share these points with the marketing manager or the guy who’s in charge of your marketing budget so that you guys can come together and see whether or not daily deals are going to be right for your property. As I said earlier, not right for everybody, but it’s certainly something that you should think about. And at least see the numbers, run the numbers first before you make a decision on whether or not this is going to be a good strategy for you.
And with that, I want to say thanks. Thanks everybody for coming to this webinar. Be sure to subscribe to our future webinars at Cloudbeds.com. We have a webinar subscription or a blog subscription form that you can fill in to be notified the next time we have a live webinar that we’re going to be doing. We tend to do two webinars every single month. That’s the cadence we have here at Cloudbeds.com. We’ve got a variety of very interesting topics all related to hospitality marketing and management.
So stay tuned for future webinars from the team here at Cloudbeds. This is Brandon and Alex, saying goodbye. Thanks very much for showing up.