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Jetsetter Purchased By TripAdvisor, What Does This Mean For Flash Sales And Travel?
Despite offering a well-respected reputation in the industry for decent flash sale deals for consumers interested in luxury travel experiences and recent advancements in its mobile application with tonight-only deals, Jetsetter has not been a strong revenue driver for the company, with some estimates putting the site as low as 10% of the Gilt Groupe's overall revenue. In recent months, the site was losing as much as $2 million annually, Skift estimated.
This isn't a shock – the founder and CEO of Jetsetter, Drew Patterson,
This isn't, of course, indicative that Gilt Groupe, which primarily deals with fashion, had a lack of experience in the travel space. The company CEO, Michelle Peluso, was the former CEO at Travelocity.
TripAdvisor announced on Tuesday that it was purchasing the site for an undisclosed amount, although rumor has it that the site was on the market for somewhere between $30 and $50 million.
"Jetsetter is an outstanding brand and I am absolutely delighted to welcome the Jetsetter team to the TripAdvisor family," said Steve Kaufer, co-founder and CEO TripAdvisor, Inc. in a release. "We are excited by the opportunities this provides to continually help drive amazing value for our travelers staying at some of the world's most highly-rated hotels."
What will this mean for travelers? We're not sure. TripAdvisor also owns SniqueAway, another high-end flash sale site that some would consider a competitor. The merging of the two sites could mean a stronger product, or less market competition overall. We'll be eager to see which of the two brands remains after a few months, and if this signals the beginning of the end for the flash sale boom for travel, particularly as companies like Living Social and Groupon have reported struggles over recent months.
We'd love to hear your thoughts. Leave a note in the comments below.
[Image Credit: Jetsetter]