A framework for designing and implementing effective online coupons in tourism and hospitality

Abstract

Although the use of online coupons is increasing in popularity in the tourism industry, there is limited research investigating the design and the implementation of online coupons that maximizes their business benefits. Research in this field is urgent, as preliminary studies provide conflicting evidence about the impacts of online coupons on firm’s performance. This article aims to fill in this gap by developing a holistic framework demonstrating how tourism firms can effectively design and implement online coupons. To achieve that, the article reviews and also expands the previous literature on coupon promotion in order to consider the new characteristics and capabilities of online coupons; the implications of the latter on online coupon delivery and management practices; and customer behaviour towards the online coupons and the firm. The framework is developed under two dimensions: (a) it identifies the stages of customer behaviour that need to be materialized for achieving the benefits of online coupons as well as it proposes metrics for measuring the achievement of the aims of these stages; and (b) it identifies the various factors that may influence the customer behaviour towards the online coupons and the firm at each of these stages. The implications of the proposed framework are also discussed.

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