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To Groupon or Not To Groupon: A Tour Operator’s Dilemma

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dc.contributor.authorDev, Chekitan S.
dc.contributor.authorFalk, Laura W. Ph.D., R.D.
dc.contributor.authorStroock, Laure M.
dc.date.accessioned2020-09-10T15:26:56Z
dc.date.available2020-09-10T15:26:56Z
dc.date.issued2011-11-01
dc.description.abstractThe case of a tour operator in New York’s Finger Lakes region highlights the remarkable potential benefits of participating in a social coupon promotion, as well as the possible pitfalls that require a carefully crafted arrangement. The benefits include participation in an attention-grabbing website (in this case, Groupon) and having many new customers exposed to the business. Possible disadvantages include cannibalizing existing customers, attracting deal seekers who will not become repeat customers, and failing to make up for the revenue forgone when discount purchasers occupy spaces that could have held full-price customers. For the tour operator, Experience!The Finger Lakes (E!FL), an additional challenge was to create a discount package that did not lose money. To alleviate potential issues, the tour operator used a creative approach that involved working with Groupon and participating wineries to add value to the core tour product. By creating a special package, E!FL was able to cover costs, add value for all parties, and offer a different product that was not directly comparable to its core menu of tours.
dc.description.legacydownloadsDev_202011_20To_20Groupon.pdf: 612 downloads, before Aug. 1, 2020.
dc.identifier.other6535205
dc.identifier.urihttps://hdl.handle.net/1813/71040
dc.language.isoen_US
dc.rightsRequired Publisher Statement: © Cornell University. This report may not be reproduced or distributed without the express permission of the publisher
dc.subjecthotels
dc.subjectonline booking
dc.subjectonline travel agents (OTAs)
dc.subjectdiscounts
dc.subjectsocial coupon promotions
dc.titleTo Groupon or Not To Groupon: A Tour Operator’s Dilemma
dc.typearticle
local.authorAffiliationDev, Chekitan S.: csd5@cornell.edu Cornell University

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