Secret Escapes Is Growing on Acquisitions and Flash Sales' Stubborn Viability
Skift Take
The conventional wisdom has been that flash sales can't be a profitable model during economic good times. The apparent success of Secret Escapes puts the lie to that notion.
Flash sales for travel are out of fashion in the United States. A common explanation is that the model only works during recessions when hoteliers are eager to offer discounts to put heads in beds — and when consumers are willing to be more flexible than usual about their travel plans to snare deals.
But the apparent steady growth in Europe of Secret Escapes, the London-based vacation deals marketplace, suggests that smart execution can still win the day during economic good times.
On Wednesday, Secret Escapes said it had bought all of the equity of Slevomat Group, a leading travel deals business based in the Czech Republic, with brands Slevomat.cz, Zlavomat.sk, and Skrz.cz
Slevomat.cz will produce net sales minus tax of close to $119 million, or 100 million euro, this year, the companies said. It will retain its brand.
Earlier this year, Secret Escapes was named one of the 1,000 fastest-growing businesses in Europe by the Financial Times. It says that its portfolio of brands will sell
