Groupon targets Opentable with the Savored acquisition

http://copilotlabs.com/groupon-savored-vs-opentable/

by mhendrick • 14 years ago

5 1 14 years ago

twoodfin• 14 years ago

I'm not sure I agree with the analysis here. I'd be surprised if OpenTable is driving more than a small percentage of their reservations via "deals". They have a loyalty program and occasional promotions, but the value to the consumer is that if a restaurant has online reservations anywhere, it's most likely via OpenTable. Anecdotally, I'm aware of a few local restaurants that have tried to go with another provider, presumably to save money, but went back to OpenTable because of customer demand.

It's hard to see how a "deals" site can overcome the brand penetration (it's on the iPhone now!) and ubiquity of OpenTable.

And as the article points out, there's a definite down side to perpetually "driving traffic" with discounts, particularly for fine dining establishments. The places that are the most profitable for OpenTable are, I'd think, the least likely to want widely advertised discounts.

Groupon targets Opentable with the Savored acquisition

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