Maximizing on the use of limited time offers

http://www.regalhotel.com/regal-hotels-international/en/promotions/Regal-Welcome.html

From first of June to the 30^th of September, customers booking directly on the above stated website with an indicated special code will enjoy a 30 % discount on available rates in addition to other benefits. Customers who make an advance booking through this offer will be entitled free daily breakfast with a maximum of one patron allowed, complimentary broadband internet that connect up to 4 devices and free bus service to and from the Airport.

The target market of this promotion is the innumerable tourists who will be flocking the city due to the attractive summer climate. It is imperative that the target market succeeds at one of the fundamental purposes of limited time offers, which is, to stimulate a stream of new customers and maintain current customers. With the many tourists, customers might inevitably be drawn by the offer.

Are there any financial risks of the offer? I think there is. First, it is important to note that very many other hospitality companies in the city who are equally scheming to attract these customers. If anything happens such that other companies have a better competitive edge that the company in discussion, significant losses will be made considering only few customers will flock the hotels on a discounted fee. That is a double loss.

To take care of this, the company ought to be more explicit on their offer (Taylor, 200)1. It is not enough to just state blankly that customers will get a 30% discount. People need to see real figures. That is, the exact money they are paying after the discounts. They need to see clearly on the first glance. Customers need to see the math and hence do comparisons with other companies and hence choose this promotion if it suites their needs(Hsu & Powers, 2002).

References

Taylor, D. (2001). Hospitality sales and promotion: Strategies for success. Oxford: Butterworth-Heinemann

Hsu, C. H., & Powers, T. F. (2002). Marketing hospitality. New York: J. Wiley.

Taylor, D. (2001). Hospitality sales and promotion: Strategies for success. Oxford: Butterworth-Heinemann.