Travelzoo is claiming leadership of the ultra-competitive daily deals sector based on an online group buying market survey by researcher Telsyte. The study examines the performance of 51 Australian group buying websites between between April and June 2011. It shows that the average price for a Travelzoo Local Deal was $156 compared with the industry average of $86.20, while each offer grossed almost $30,000, almost three times the standard industry take of just under $12,000.
The Telsyte survey said Travelzoo also took a more deliberate approach, publishing an average of three deals per week compared with the industry average of 15.6. Brad Gurrie, General Manager of Travelzoo Australia and South East Asia, said this strategy appears to be working. “We don’t face the pressure of sending out a deal every day, which has allowed us to focus on quality across all areas of the business.”
The study also reveals explosive gowth in the nascent sector with the “market is on track to reach or exceed $400 million by the end of 2011.”
Telsyte analyst Sam Yip will be presenting at TRAVELtech in Sydney on August 29, 2011.