80% is the number to remember—it pops up everywhere. About 80% of business generated by daily deals is from new customers. Business owners have been concerned that only their repeat customers would use the daily deals, thereby eating away at revenue they would have made anyway. The data shows this not so. Additionally, 80% of customers who used a daily deal ended up spending more money at the business than the value of the deal. This can include hospitality upgrades, additional night stays, restaurant purchases, and more. Of customers that purchased a daily deal, 1/3rd of them became repeat customers. This shows that daily deals provide sticky customers, making daily deals a legitimate strategy for growing a business, rather than momentarily injecting it with new customers. Another metric to consider is how many customers who buy the deal, use the deal. When a customer buys a deal, the property splits the revenue with the daily deal websites. It’s then up to the consumer to turn in the deal before it expires. However, Rice reports that most consumers who purchase deals never redeem them. For hotels, this is great news. It means that using daily deals, you can generate excess revenue on vacant inventory that you can still monetize using your traditional marketing channels. You’re making free money on inventory that would have gone vacant anyway (which is why you set it aside for daily deal websites). Get the full story at Hospitality.Net