Navy Pier blames Groupon for cutting into Winter Wonderfest revenue

Navy Pier officials blame Groupon for a drop in revenue for its biggest annual festival, though they credit the daily-deal site for generating more traffic.

With Winter Wonderfest ticket sales up 12% in volume, but event revenue down about 8% so far, Navy Pier officials are reconsidering whether future partnerships with Chicago-based Groupon are worthwhile. Groupon offered Winter Wonderland tickets for $9, half the price, one day in early November. Mark Thompson, senior director of marketing for the Pier, estimated some 7,500 Groupons were sold that day — a 283% increase from the same Groupon deal offered for last year’s Wonderfest. Overall ticket sales are running 12% ahead of last year to date. But revenue is down considerably: Wonderfest has netted $420,000, compared with $455,000 during the same period in 2009. That’s because Navy Pier, like most Groupon clients, agreed to offer 50% off the full price and then split the proceeds 50-50 with Groupon.