The use of Flash Sales in the Lodging Industry Essay.

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The purpose of the paper is take a study dive into the growing
popularity of flash sales and the leading sites/apps that provide them such as
Gilt, Fab, RueLaLa, the alike. Include the similarities and differences of each
based on services provided, etc. The research should include the origins of flash sales and those sites/apps, statistics
(hard datacollection)on its use by the consumer. The paper should have some focus on consumer buying and making decisions under pressure.

 

Here’s a snippet of the essay.

 

Operators in the lodging industry often grapple with excess inventories due to the seasonal nature of their consumption trends. Not only is the lodging business affected by the seasonality of consumption, it is also affected by economic dynamics and market slowdowns. These moderating factors, triggered by the advent of internet and ecommerce have spawned a new business model known as “Flash Sales.” This is an ecommerce trend in which a website may offer a sale on a single product for the duration between 24 and 36 hours (Max & Ritesh, 2011). Potential customers then register as members so as to receive daily updates of the products in sale through social media or email. The websites partner with suppliers to give great discounts to the customers according to optimal economies of scale. Companies’ huge inventories of goods through offering great discounts on all products from home goods to luxury fashion to local services and travel experiences; this represents a rapidly growing section in the online retail business. The limits on sales have generated a new market trend known as online impulse travel deals purchase. What this new trend means for the hotel and lodging segment is that empty rooms that would otherwise be hard to sell due to the prior mentioned constraints  would be filled with ease. This research paper looks at the phenomena of flash sites with a special focus on the lodging industry.

 

Meanwhile, flash sales have been offering travellers a chance to discover a new property or hotel experience that they would not have afforded. Besides, the high discounts offered by flash sites are enough to attract customers; travellers are usually motivated by deals. Research indicates that 20% of travellers may buy some sort of travel service because of a flash sale or time sensitive offer delivered via email from providers such as airlines or hotels. This shows that the cost may not be the only trigger behind purchase; the right price must follow an attractive deal (Dana & Anupreeta, 2012).

 

Some of the examples of flash sites are Groupon, and Living Social. When Groupon launched Getaways with Expedia in July 2009, they were able to receive 9% of their $147 million for sales in North America from Getaways by October. Groupon’s closest competitor LivingSocial, after debuting its Escaoes segment in November 2012 has been able to book over 600,000 rooms in hotels exceeding 800. Basing on this background, one may wonder why this business may get survived in the market (Dane, 2012).

 

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