IN-DEPTH: Interview with David Krauter, general manager, SniqueAway

Published: 23 Mar 2011

IN-DEPTH: Interview with David Krauter, general manager, SniqueAway

By Ritesh Gupta

The concept of private online travel clubs and its members being offered exclusive hand-picked offers, featuring savings of up to 60-70 percent off hotel rack rates or brochure prices, and the same lasting for few days or as a flash sale is gaining traction in the marketplace.

For consumers, flash sale sites are becoming increasingly popular because they’re an attractive way to access overstocked inventory, or to get introduced to new offerings. Consumers are looking for value and access to the best hotels. Hotels want to reach new customers that want to experience all the hotel has to offer. As such, private sales are a great match for both sides and continue to increase in popularity.

A player like SniqueAway, a free, members-only private sale site, providing exclusive access to deals on top hotels at deep discounts, believes this is just the beginning.

Commenting on the concept of flash sales, David Krauter, general manager, SniqueAway, says, “We’ll likely see innovations in the vertical as the model evolves, including new features and offerings, to meet the needs of both the supplier and the consumer.”

SniqueAway is part of Smarter Travel Media, a TripAdvisor Media Group Company. All hotels featured on SniqueAway have earned a minimum four-star rating and a four or five out of five review rating on TripAdvisor. Hotel reviews are shown alongside limited-time offers available only to SniqueAway members, providing a quick view into how other travellers view the hotel and making it easy to book rooms before they sell out. To build membership, SniqueAway also relies on the wisdom of the crowd to spread the news, since to be a member you must be invited by another member.

Opportunity

Krauter says many travellers today are overwhelmed by the research and decision process.

“At the same time, with so many choices for purchase and research channels, today’s customer has high expectations for quality, value and other factors. Meanwhile, suppliers want to get their brand in front of the right customer and have them buy a great experience that could be repeatable and referable,” Krauter told EyeforTravel’s Ritesh Gupta.

SniqueAway aims to address these opportunities by offering its members four- and five-star hotels in top destinations at great discounts.

“All of the properties we feature have been top rated by TripAdvisor travellers, giving the hotels “crowd-sourced” credibility for our members. Hotels also tell us that they like the customers we’re sending them,” he said.

On how the offering has fared, Krauter said, “It’s clear the private sale concept in travel has been accepted, even just viewed solely by the popularity in the space. However, there is still the persistent consumer misconception that flash sales are only for last minute deals. This is especially a challenge in our case, since sales on SniqueAway short – only seven days – but most properties offer dates that can be booked months out.”

Buying behaviour

Unlike traditional OTAs, members come to such sites to be inspired, typically with no specific destination in mind.

So why is this core target group quite attractive in terms of its propensity to spend on travel?

“Even though our members love a great deal, it’s not necessarily all about the price,” says Krauter.

He said key factors for purchases include the destination itself, the hotel experience and amenities, the opinions of the TripAdvisor travellers who have stayed there and the brand of the hotel.

“Our members love the entire experience of their stay, dining out, pursuing activities and fully immersing themselves in their escape through various services. For the hotel, they are especially attractive customers since they buy these add-on services when they get to the hotel,” added Krauter.

On how the company typically goes about offering deals/ exclusive offerings to its subscribers, Krauter shared that each of its sales runs for seven days and the company gives its members a limited preview of it a week before it goes live.

“We work with each individual property to develop a compelling offer that will be of interest to our members. Our partner development managers have all worked in the hotel industry in sales, marketing and revenue management, and so they are adept at ensuring a win-win situation for both the hotel and the consumer,” Krauter said.

Partnership

Krauter says the company has had fruitful partnerships with hotels it has worked with.

“We’ve had great success with offers from not only more typical vacation locales like Las Vegas, Orlando, Mexico and the Caribbean, but also with hotels in areas like Pennsylvania, Rhode Island, and Arizona,” shared Krauter.

Few do’s and don’ts for any hotel company that it is planning to work with private travel sites and group buying sites

David Krauter, general manager, SniqueAway:

Hotels should make sure the experience and audience of the private sale or group buying site are in line with their target customer.

In addition, a property should plan their participation in these sites as part of their overall marketing plan, considering how it fits into the advance purchase strategy for peak and shoulder seasons.

Finally, private sale members are looking for an experience, so be sure to include stellar photography that highlights all you have to offer.

At the same time, hotels should not assume private sale sites are for only last-minute and distressed inventory as they provide excellent access to new customers. Don't assume rate is all that matters for these highly desirable customers. Hotels should make sure that their offer is compelling across all fronts, including travel dates, room types, and the entire stay experience.

Mobile

SniqueAway already has an experience exclusive to mobile (smartphones), shared Krauter.

“The trend toward mobile platforms is ramping up for all online business, and private sale is no different. We expect the trend to continue and will be making more advances in the space as more of our members begin going to their mobile phones first when planning and purchasing their trips,” concluded Krauter.

Online Marketing Strategies for Travel 2011 Conference

Krauter is scheduled to speak at the forthcoming Online Marketing Strategies for Travel 2011 Conference, to be held in Miami (June 7-8).

For more information, click here

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Contact:

Gina Baillie
VP, Marketing,
EyeforTravel
E: gina@eyefortravel.com
T: UK +44 (0)207 375 7197

 
 
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