A study on online travel coupon deals

Abstract

In recent years, group buying websites such as Groupon and LivingSocial have been increasing in popularity, as they continuously expand their online coupon deal offerings to a variety of products and services. Out of these new offerings, online travel coupon deals are unique as they offer discounts on travel, which are usually considered a luxury. The group conceived this study with the aim of uncovering what motivates and deters Singapore residents from purchasing online travel coupon deals, the effects such deals have on their travel habits, as well as the reasons for choosing one group buying website over another when purchasing such deals.

It was found through a questionnaire posed to 225 respondents who are Singapore residents that the amount of discount offered is the most important factor that leads to the purchase of online travel coupon deals, whereas low quality deals is the most important factor that deters Singapore residents from purchasing online travel coupon deals.

Our results also show that the availability of online travel coupon deals increased the likelihood of Singapore residents travelling more frequently. However, it would not increase the likelihood of them visiting countries nearer to Singapore; instead, they are more likely to travel to further countries after the availability of online travel coupon deals. The duration of travel also remains the same before and after the availability of online travel coupon deals, with no increase in the likelihood of Singapore residents going for short trips after the availability of online travel coupon deals.

Singapore residents also regarded recommendations of personal acquaintances as the most important factor that would influence them to choose one deal website over another.