Sunday, August 16, 2009

Deja Vu for Promotion

One of the more passionate responses that we have received from accommodation providers was in reaction to our post on the 5-Day Sale. The promotion was run in June 2009 and was directed at the Australian market. The rate based promotion was restricted to accommodation deals at least 50% off their rack rate.

We tried to take a positive spin and commented:
"Due to their higher rack rate, hotels should be able to easily accommodate a 50% reduction into their existing tariff structure. Motels that traditionally offer lower tariff with a narrower band between their rack and sell rates may find a 50% reduction more challenging.

It can be argued that a promotion that is purely based on rate reduction is merely appealing to the lowest common denominator. What we like about the initiative is that it is a proactive "industry response." We hope that this will be prove to be successful and that operators will be supportive." are about to embark on a campaign that has been aptly branded "7-day Ridiculous Rates Sale" that will run from 17 - 22 August. Much like their campaign 2-months earlier, will be again promoting accommodation providers that offer deals at least 50% off their rack rate.

Whilst we may have been (naively) supportive of the first "one-off" campaign we are somewhat more cautious about's second attempt at a promotion purely based on slashing tariff. It could be argued that successive promotions can assist normalising expectations of 50% discounts in the accommodation industry.

Shouldn't we consider adding value before sending tariff through the floor? will be prominently promoting the "7-day Ridiculous Rates Sale" on their website, farming their vast database of clients and interestingly running supporting radio advertising on major Australian radio stations.

There is no mention if there will be
supporting promotional links from like the last campaign.

Click the "Get Widget" link below to place this widget on your website or blog!