Ed French on BOGOs

Discussion created by skiadcock on Sep 27, 2012
Latest reply on Sep 27, 2012 by communitymanagers

Saw this in an interview with Ed French:


"What is the deal with BOGOs.  Why are they gone and will they return?

Ed:  Buy-One, Get-Ones, or BOGOs, were an offer where one could buy a meal or even a night, and get another for free.  We never promoted or promised them to customers, but we did include them in our elite member kits for a number of years in the 90’s and early 2000’s.  Frankly, most elites did not even know about them. 
In the end, it’s awfully hard to justify a 50% discount, especially when most elites did not know about them.  And, of those that did, only a very small number redeemed them.  At the same time, it became really hard to convince our  hotels to do them, and more and more they refused to accept them, so we stopped. 
Unfortunately, we handled the communication poorly and our members were upset that we abruptly stopped.  We continue to evaluate what we might offer along these lines, but we don’t have anything at this point that we are ready to talk about."
So the part I don't get is if most elites didn't know about them & hardly any used them, then why not keep them?  It's offering a benefit which your members would appreciate so Marriott looks like it's offering something, yet knowing it's not going to cost that much due to people not using them so won't impact revenue that much: a bit of a win-win.
Same w/ the part on the hotels refusing to accept them.  If they weren't being used that often, then why were the hotels unhappy? 
And it doesn't really mesh with what Michelle said earlier re: the reasons for discontinuing them.
It's hard to justify a 50% discount when people are using them more than people not using them would be my take, and is probably why the hotels said screw this.
Anyway, given the evaluation has been over a year & we don't have anything at this point to talk about, it's safe to say BOGOs are indeed a thing of the past & probably will not be replaced ever.