Groupon and Expedia team up for travel deals

Groupon Getaways

Warning to travel-deal junkies: Your inbox is about to get a bit more crowded.

On Tuesday, daily deal giant Groupon.com and online travel agency Expedia.com officially launched Groupon Getaways, promising limited-time offers of up to 50 percent off regular rates on select hotels and resorts.

The partnership also promises to shake up the rapidly expanding universe of flash-sale travel sites and potentially overwhelm consumers who are already dealing with dozens of e-mailed offers delivered by the day or week.

The deals will follow the Groupon model, in which users can purchase a discount voucher for a limited time that can be redeemed at a future date. Accessing the 135,000 hotels in Expedia’s database, the new product is expected to reach 50 million (combined) Groupon and Expedia members.

The site launched with 14 deals, each available for one week. The Sin City Escape, for example, offers a one-night stay at the Palms Casino Resort for $89, 55 percent off the retail price. A three-night all-inclusive stay at the Verandah Resort in Antigua was being offered for $695, a savings of 44 percent.

Unlike competitors, including Yuupon and Living Social Escapes, Groupon Getaways only become valid after a minimum number of users purchase the deal. Users should also read the fine print as the deals typically include add-on perks that guests may or may not care about, such as gaming credits or dinner for two, therefore skewing any savings.

Specific deals aside, Groupon Getaways is further proof that the flash-style approach — buy now, travel later, save big — strikes a chord with recession-chastened travelers.

“Half of travelers let their budgets dictate where they go; they’re looking for deals,” said Henry Harteveldt, travel industry analyst for Forrester Research. “These sites let consumers take the old saying, 'I can get it for you wholesale,' to a new degree of access.”

And there’s no shortage of access points. Among the players: 

  • Living Social: Groupon’s biggest competitor got into the travel game in November when it launched, focusing on close-to-home deals of one to two nights.
  • Yuupon.com: Launched in March, this travel-specific site offers a handful of weeklong deals. Currently highlighting beach vacations, the site is offering an extra 10 percent off vacation packages through July 19 (enter promocode: LIFESABEACH at checkout).
  • The other guys: More about spas, restaurants and other local services than travel per se, Priceline, Travelzoo and even Google have all recently unveiled new daily deal products.

Clearly, the field is getting crowded, but according to Mary Song, founder and CEO of Yuupon.com, there’s still room for others — even, it seems, with the challenges presented by two 800-pound gorillas entering the fray.

“Groupon getting into travel will be both a help and a huge competitor,” she said. “The majority of Americans still haven’t adopted this model, so there’s still a huge upside in terms of market share.”

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 Rob Lovitt is a longtime travel writer who still believes the journey is as important as the destination. Follow him at Twitter.

Discuss this post

Groupon, what a crock, totally wasted my time with a flood of continuous email offers I didn't want.

    Reply#1 - Tue Jul 12, 2011 5:03 PM EDT

    I think it will be a huge success! I can't wait to get some great traveling deals - the summer isn't over yet! Daily deal sites seem to be all the rage like there is now one for daily sporting good deals for athletes called Qualify The Deal www.qualifythedeal.com They seem promising!

      Reply#2 - Wed Jul 13, 2011 10:14 AM EDT

      We would be more than happy to invite folks to The Presidential Culinary Museum featured at our Bed and Breakfast in this weeks world launch of Groupon Getaways!

      Our five Chefs love cooking for folks and treating them to all types of fun at The Inn of the Patriots in the town named after the President of the United States of America, Grover, NC

      Sincerely,
      Chefs Marti, Stormy, Amanda and Kim

        Reply#3 - Thu Jul 14, 2011 10:42 PM EDT

        Groupon is going to have a lot of new business with their new partnership. Many people want to save money on travel, whether it is business or personal.

        Another great way to save money is by using groupons and daily deals to your advantage. One site, http://www.dailydealpool.com, is a fast and easy way to find local sales and deals. It will compile all the deals for you and send them to your email inbox, keeping you from endless searching and missing out on a great buy!

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