Yesterday`s announcement of the proposed acquisition of Lastminute.com by Sabre-owned Travelocity for …
Yesterday`s announcement of the proposed acquisition of Lastminute.com by Sabre-owned Travelocity for £577m heralds continued consolidation in the travel industry . Analysis by Hitwise, the world`s leading online competitive intelligence service, reveals the wisdom behind the deal.
Whilst Travelocity is the second most visited travel agency website in the US, the firm has struggled to gain a stronghold in the UK. “Continued fierce competition and shrinking margins have led firms to pursue scale as the road to profitability,” said Simon Chamberlain, General Manager of Hitwise UK. “Expedia has been extremely successful in the UK, competing with Lastminute.com as the favoured online travel agency among UK consumers. Travelocity has enjoyed a similar position in the US and the acquisition of Lastminute.com may present the most efficient path to better market penetration in the UK market.”
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