Groupon and LivingSocial blew up the business of deals -- just ask Travelzoo. Now people are trying to figure out how to put it back together.
This is just further confirmation of something we already knew: That travel deals often aren't really deals. Several sties, such as DealAngel and DealBase, have tried to make businesses of out vetting deals, but they never got really far.
The move outwardly appears to make sense for LivingSocial: If you are attracting a lot of traffic among users who aren't interested in your flash sales, why not diversify and get them to reserve a different hotel. Just how the economics plays out in the end remains to be seen.
From Groupon to Travelzoo and LivingSocial, the bloom is long off the rose in the daily deals space for travel and beyond. Amazon, which is an investor in LivingSocial, reports that LivingSocial recorded a $905 million operating loss in 2012.
The nation's capital is a relatively thriving city to work and live in right now, and the tourism bureau’s new ads -- while aiming for a certain shock value -- also show appreciation of the city’s diverse residents.
Gutting 10% of the workforce isn't much of a holiday package from LivingSocial. But it does highlight that the winnowing continues in the daily deals sector.
In a slight against the Chicago-based deal merchant, for Starbuck's second shot at local deals it has turned to LivingSocial rather than Groupon.
With early investors backing out of Groupon and other sites re-evaluating their rapid expansions over the past two years, it's certainly not a good week to be in the local online coupon business.
U.S. hotels can look to Australia for examples of properties that have worked with flash sites and still maintained a certain integrity of their rates.