Facebook edges in on flash-sales marketplace

2 Feb, 2012 By: Andrew Sheivachman

Flash-sale distribution has been one of the most compelling travel trends in recent years, allowing brands and hoteliers to increase occupancy during lulls in demand. Yet recent closings and layoffs may show that niche flash-sale sites will play a much reduced role for hoteliers in the future.

New York Magazine reports on layoffs at Gilt Groupe, which runs luxury travel sales site Jetsetter. The company laid off between 80 and 90 workers, and may have included the head of Gilt City, which is closely tied to Jetsetter. This week, travel flash site Voyage Privé closed down in the U.S. as well.

Facebook, meanwhile, has achieved a unique value proposition in the deals space, according to Tnooz. "Facebook has made it clear that it will not be charging for the deal platform, which is a fundamental difference from social buying services," writes Tnooz. "Where services like Groupon and others are focused primarily on providing hugely discounted offers to deal seekers, the [Facebook] Deal platform allows businesses to tailor the deals to their audience, for example offering a free coffee, a discount, or a donation to a charity in exchange for checking into the location."

Facebook also acquired location-based social network Gowalla in 2011, giving its deals offering a local component unmatched by competitors. Hoteliers should pay attention to shifts in the marketplace in 2012 to better expose their product to a wide array of consumers.