Black Friday Travel Deals 2024: What customers gain and businesses risk

Black Friday continues to be a win for savvy customers seeking unbeatable deals, with many Australian travel brands rolling out amazing offers this year. From up to 50% off holidays to exclusive flight discounts, the deals have been hard to miss. However, not every company followed the pack. Luxury Escapes notably opted out of the extravagant Black Friday frenzy, choosing a more calculated approach for their business model, rather than competing in the aggressive discounting landscape.

See the table below for some incredible travel deals to take advantage of. It’s worth noting that these Black Friday sales often transition into Cyber Sales and are extended by many businesses. However, customers should tread with caution, as some companies will stick to their stated end dates or may sell out of the products on offer.

While Black Friday undoubtedly drives impressive results in customer acquisition and sales, sometimes hitting record revenue days, businesses must tread carefully. Behind the impressive numbers lies a hidden cost (or not so hidden). The increased advertising spend required to stand out amidst the noise of not only travel competitors but every retailer running Black Friday promotions can significantly impact margins.

As the table below illustrates, sales from customers may also be delayed, artificially inflating Black Friday and Cyber Sale results. Many customers hold off booking, anticipating an upcoming sale, which shifts regular revenue into the promotional period. This pattern can also lead to a noticeable dip in sales immediately after Cyber Sales, compounding the challenges for businesses.

It’s important to note that the table provided is illustrative and not based on real company data. It aims to highlight trends and patterns typically observed during these sales periods.

A closer look at the numbers reveals an important reality. Sales revenue may grow, but the simultaneous rise in advertising costs and discounts often results in shrinking profitability. Additionally, a large proportion of new customers acquired during these sales are price-sensitive and may not exhibit long-term brand loyalty. Experience shows that these bargain hunters rarely return unless lured by similarly deep discounts, challenging the sustainability of these strategies.

For businesses, Black Friday and Cyber Monday remains a powerful tool for driving customer acquisition and short-term revenue growth. However, it must be approached with caution, along with strategic planning and alignment with the CFO and CEO, to ensure financial sustainability and protecting long-term brand equity.