Groupon launches travel vertical with Expedia
Online travel company Expedia and local e-commerce specialist Groupon have started their joint offering, as they announced the first live deals on Groupon Getaways with Expedia.
Published: 13 Jul 2011
Online travel company Expedia and local e-commerce specialist Groupon have started their joint offering, as they announced the first live deals on Groupon Getaways with Expedia.
The site will offer a mix of opportunities, from 4- and 5-star properties and activities at premiere locations to nearby weekend packages. The “handpicked” travel deals are being typically offered around 50 percent off retail rates found at other online travel sites, according to an official release.
The offers available at launch will be followed by additional premium travel deals to be offered through Groupon Getaways with Expedia.
Customers have a limited time to buy a discount voucher good for future travel.
“Through this partnership, we’re aiming to give the world’s travellers a way to capitalise on travel dreams that might otherwise go unrealised,” said Scott Durchslag, president, Expedia Worldwide. “Travel can be really complex, and this service is simple. Sign up, and our Getaway deals will arrive in your in box. When you see one you like, buy it, then take the trip on your timeline.”
Aaron Cooper, senior vice president of New Business, Groupon, said, “We’ll introduce subscribers to interesting places at prices they won’t expect.”
As per the information available, typically, a participating merchant in a Groupon deal collects about half the “face value” of the deal. On a $100 hotel offer, the hotel would collect $50 (Groupon and Expedia split the other $50). As highlighted by Forrester last month, a key selling point of most Groupon deals is the lack of blackout dates. Though travel sellers may be able to restrict offers to certain dates or charge extra for high-demand periods, Forrester believes the potential lack of controls and large volume of sales will strain travel sellers’ revenue management models and pose a credible risk of dilution.