Rejoice! Daily deals in travel are dying

Did you hear? Even Groupon is moving away from the daily deal business. That’s right, they are selling vacuum cleaners, mattresses and other overstock merchandise to their massive mailing list of bargain hunters because their services-based voucher sales have slowed. Is it really any wonder? I mean, how long could the craziness last before merchants just stopped wanting to sell their services at a 75% discount? Investors have also taken note of the slowdown and have hit the company’s stock price hard, driving it down by over 80% since it went public. But the slowdown in daily deals isn’t just being felt by Groupon. Even its leading competitor LivingSocial has suffered this past year. Amazon, which invested $175 million into LivingSocial in 2010, had to write down almost the entire value indicating that it had paid too much for the original investment. Not a very positive sign from one of the leading ecommerce companies in the world. In April this year, Travelzoo CEO Chris Loughlin blamed the deal industry for “unsustainable practices” that affected Travelzoo’s ability to compete in the space. In addition to the pain being felt by the big players, daily deal startups are finding it hard to stay alive too. According to Daily Deal Media and Yipit, over 798 daily deals sites closed down in the last half of 2011 and that number will undoubtedly increase in 2012 as the segment seeks to consolidate. Read More

Published on:  By: Stephen Joyce


About hospitalitytechnology

Technology is making greater and greater inroads into our lives. Right from when we wake up in the morning to when we head to sleep – we cannot imagine a life without the gadgets and gizmos that make life easy and interesting. When we travel and stay in hotels, our expectations are no different. We expect all the technological amenities we easily access at home if not more. The hospitality industry in increasingly accessing technology to wow guests, optimize their use of manpower, control hotel functions in an integrated manner and on the whole reduce costs while increasing efficiency. This blog is meant to track these technological changes happening in the hospitality sector. The growing move towards sophisticated hotel ERP, the growing use of cloud computing, the rapidly changing customer facing devices – smart phones and iPads, the increasing security concerns and more. Expect to find interesting articles, whitepapers, thoughts, and observations. Feel free to comment and even mail us content that you don’t mind posted here. Happy reading!
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