Flash sale sites: when they help your hotel and when they hurt
Flash sale and impulse booking sites are a tool, not a strategy. That is the line revenue consultant Jon Siberry of Z Hotels and Sarova Hotels draws in a recent episode of the Hospitality Net podcast, and it is hard to disagree with him. Used well, they clear distressed inventory on a specific date and bring in guests you would never have reached through your own channels. Used badly, they train your best customers to wait for the discount and quietly pull down your ADR across the board.
The line between the two is thinner than most revenue teams admit. A flash sale that targets a soft Tuesday in November works. The same sale pushed two weeks before Christmas, when your direct channel is already converting at a healthy rate, does not fill a gap, it eats into bookings you were going to get anyway. Siberry's point is that the channel is not the problem. The problem is the absence of a clear rule about which dates qualify, what floor price applies, and how the offer is kept out of the sight of your loyalty base.
My take: the real danger is not the flash sale itself, it is the operator who reaches for it as a default lever when occupancy dips. Hotels that define their distressed inventory in advance and protect direct rates strategically get the upside. The rest just fund somebody else's customer acquisition.
Quick questions
When does a flash sale actually help a hotel's revenue?
How can a flash sale erode a hotel's ADR?
What does Jon Siberry of Z Hotels say about impulse booking sites?
Should hotels protect their direct channel from flash sale offers?
What is the biggest mistake hotels make with flash sales?
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