Groupon today launched the newest addition to its group buying site: Groupon Getaways – a travel-focused deals site that’s powered by Expedia. There are, of course, already a number of similar sites on the market, with LivingSocial Escapes being one of the market leaders.
Thanks to its partnership with Expedia, though, Groupon will be in an extremely advantageous position to rival all of the other sites that took the basic Groupon model and applied it to travel before Groupon itself got a chance to do so.
Take this recent LivingSocial Escapes deal for a hotel in Mexico, for example. It’s a good deal and I’m sure LivingSocial will make some money off it, but given that nobody is going to drive to Cabo San Lucas, LivingSocial won’t make a dime of the travel arrangements that its users make to actually make use of this deal. Groupon and Expedia, on the other hand, can offer users a full-service travel service that doesn’t just include the deal, but also transportation to the location and tickets for local events and sights. Besides the money Groupon makes on selling these deals then, it could also get affiliate fees for when its users book their flights, for example.