St lucia hotels – Groupon/Expedia Vouchers

Can st lucia hotels benefit from Groupon/Expedia vouchers? There has been great online buzz about the Groupon and Expedia collaboration. If you have no idea who those two companies are and you are in the st lucia travel related industry, i strongly suggest you research them now.

The collaboration promises Groupon Getaways with Expedia where reduced st lucia hotel rooms will be offered to st lucia travelers. For those st lucia hotels who are listed with Expedia, you must be asking, more reduced st lucia hotel rates for Expedia!

Ah but consider Groupon’s 50 million U.S. subscribers as a great channel to st lucia brand or stlucia hotel product discovery. With results showing most st lucia hotels run on a 40% occupancy level through out the st lucia calender year, with one or two months being fully occupied, you may want to start rethinking of your reluctance to a further reduced st lucia hotel rate. The collaboration with both parties promising millions of followers, especially with Expedia reaching its over the million mark of facebook followers. Perhaps this may be is a great way for st lucia hotels to jump on the band wagon of Groupon/Expedia potential st lucia travelers.

So how does this work? A st lucia hotel will sell their st lucia room at an amazing reduction of 50%, with Groupon/Expedia. Groupon/Expedia collects 50% of that revenue. Now depending on your operating cost the st lucia resort could be at a loss or a barely there gain. Consider this: If the st lucia resort room is $150/night. Sold to Groupon/Expedia for $75/night. The st lucia accommodation earns $37.50/night, Groupon/Expedia earns $37.50/night. Say the st lucia hotel operating cost is $17.00. The st lucia hotel profit margin is $10.50/room. Of course the st lucia rooms will vary in price so this needs to be calculated according.

However what this means is that, are the st lucia resort willing to sell their st lucia room at a 50% reduction and give Groupon/Expedia 50% of that reduced st lucia hotel room! But consider Groupon/Expedia selling 50 st lucia hotel room vouchers, with the illustration above the st lucia accommodation margin is increased. But any st lucia marketer in the travel industry is likely to asked whether there was a chance of selling their st lucia hotel room at full price to Groupon/Expedia’s cannibalizing voucher deal. It would be advised that the st lucia hotel marketer spread out its inventory to leverage some kind of healthy return. However the decision made by the st lucia hotel to sign up with Groupon/Expedia voucher deals entirely depends on the st lucia marketer to decipher whether pluses outweigh the minus. You may gain st lucia room upgrades, or extended stays and not to mention repeat business from the Groupon/Expedia st lucia traveler.

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