Sam Yip, Telsyte

Sam Yip

After a late start travel is now the largest category in Australia’s booming ‘Daily Deals’ sales sector, turning over an estimated $37m in the September quarter, according to new research from Telsyte.

“In less than three months, travel deals have moved from being the smallest category to the largest with 24% of market revenue,” Telsyte senior research analyst Sam Yip says.

“Group buying sites have quickly responded to the popularity of travel deals by categorising their deals on their home pages, or creating travel specific sub sites.”

The Telsyte report shows the group buying sector is dominated by eight big brands – LivingSocial, Scoopon, Groupon, Spreets, Cudo,, OurDeal, and Ouffer.

Yip estimates the Gang of Eight generate more than 90% of  total industry revenue, which reached $158.5 million in Q3, a quarter-on-quarter increase of 28%.

Growing fastest in the three months to September 30 were LivingSocial (+75%) and Groupon (+118%).

“The growth of the global group buying players in Australia this quarter proves that the money spent on strong local marketing has not just captured the attention of Australians, but also converted them to a sale,” Yip says.

“The strength of multi-national brands and marketing budgets once again has proven their ability to rise to the top in the Australian market.

“We’ve seen this happen with similar online markets in the past such as online search and online auctions.”

Year-to-date the market has generated $320 million and is on track to significantly exceed Telsyte’s market forecast of $400 million for the 2011 calendar year.

“The industry never fails to surprise us each quarter. We have seen double-digit quarterly growth for the past three quarters and can expect to see this trend continue next quarter,” Yip says.

“Holiday deals, promotions and offers will boost growth.”

He says the number of group buying sites has quadrupled in the past six months from 20 sites to more than 80 sites.


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