Travel Groupons: Should You Try Them?

Groupons, or “Group Coupons,” are a brilliant idea.  If you’re not sure exactly how they work, let me give you a simple example.  Suppose you decide that you want to replace your asphalt driveway with a really nice concrete one.  You call and get some bids on the work, and the best bid you can get from a concrete company is $5,000.  That’s a little steep for your budget, so you ask the concrete man, “What if I can guarantee you that six of my neighbors will want their driveways done, too?” 

The prospect of filling 7 driveways at once that are all at the same basic location is an extremely attractive idea to any concrete company.  They offer everyone a 25 percent discount if you can sign them all up.  Then you print out some simple fliers that say, “Concrete driveway renovation, 25 percent off!” and you place them on doorknobs all over the neighborhood.  When you get six other interested parties, you pull the trigger on the deal.  If you get more than six, you call the concrete company and renegotiate the deal.  If you get less than six, you cancel the deal. 

That’s how a Groupon works, but instead of you doing the legwork, there’s a nice website out there that does it for you.  All you need to do is check the site (www.groupon.com) once in awhile to see if there is anything interesting that you might want to get in on.

As you might imagine, there are many offerings for travel-related Groupons.  Airfare to San Francisco, deeply discounted resort hotels, package deals, and many other attractive trips are routinely offered.  Should you try one?  Should you give one as a gift?  If you receive one, should you use it?  Here are some frequently asked questions about Groupons and some answers, based on my experience traveling with them:

• Are Groupons a good deal?  Yes!  Without exception, you will save substantially (30-65 percent or more) when traveling via a Groupon deal.
• What’s the downside of a Groupon?  Typically, resorts, airlines, hotels, etc, only agree to Groupons during their normal “down times.”  For example, a winter resort may offer an attractive Groupon during the summer months when they don’t have ice and snow.  Therefore, the “Tropical Paradise” that looks very attractive in price may find you at the resort during the monsoon season.  Do your homework before you go.  If the trip is for business, then it probably doesn’t matter as long as you’re saving the money!
• Are Groupons negotiable, once they are purchased?  Rarely.  Groupons are laced with fine print, and smart buyers read the fine print very carefully.  An “all inclusive vacation” may specify that “free dinner is only available Sunday through Wednesday,” for example.  Do not expect the resort to honor that on a Saturday just because you planned other activities for Sunday.  On the other hand, if they offer “Free Jet-Ski rental," but they have none available on the day that you want them, they should certainly offer some other form of compensation.
• Can you give a Groupon as a gift?  Yes, unlike airplane tickets or other reservations, Groupons can be purchased and given as gifts.  All the recipient needs to do is book the specified deal in the time allotted, and give the groupon number or code to the reservation desk, along with your name.
• What else should I look out for?  In some cases, the airline, resort, etc, might have to bill back the Groupon website.  When this happens (and it often does), you’ll see a charge for that amount on your bill.  The front desk will assure you that your card won’t actually be billed for it, but that’s the only way their computers can handle the weird billing.  Personally, I’ve walked away from hotels with a “balance” of $55 or more, and it never was billed to my credit card, but it is something to look out for.

EXTRA: If you have questions for Ken regarding business travel, hotels, airplanes, etc, please send him a “Tweet” on his twitter account.  You can also follow Ken on Twitter @foodbreeze!