Tourism, a new internet bubble?

Neither Facebook, or Twitter, or MySpace. The site whose growth has been the most brilliant in the history of the Internet is called Groupon thirties and Andrew Mason founded in November 2008. His mechanics are simple: each of the registered users of the portal receives enticing promotions, once entered and show their interest, they are waiting for a group of people also want to be part of that promotion. When you complete the minimum number of persons, the promotion takes effect. Groupon currently has more than 83 million users in 43 countries, which has sold over 70 million commercial offers. The most attractive is its rapid revenue growth: Groupon, which employs 8,000 people and revenues of $ 644.7 million in the first quarter of this year, compared with 713.4 million it generated in all of 2010. In 2009 turnover of just 30 million. However, it is in losses (117 million dollars in its first quarter), and burn your cash very quickly, about 100 million per quarter. This is because $ 180 million in marketing spending between January and March. In addition, business moves at a very competitive due to low entry barriers: Groupalia, Buyvip, Letsbonus, Santa Monica Club, VentePrivee, Destinity, ViaVip, etc.

However, Groupon owners are optimistic that their business is still growing much more, so they said no to Google, when late last year tried to buy the company for a figure close to 3,000 million dollars. After not Groupon, Google announced it would launch their own business deals and discounts, with the name of Google Offers.

Too much offers

The proliferation of such websites with tourist megaofertas have not only tightened a little more rope to traditional travel agencies, but have played the online fee. Something does not seem to worry investors.
The last operation in this segment, as approved by the European Union, has been selling by Amadeus Opodo groups Axa and Permira for 450 million euros. The intention of these groups is to merge with eDreams Opodo Go-Voyages to form the largest European online agency.Something that, if so, is not going to cheap out on both groups, as Axa bought Go Voyages by 300 to 350 million euros last year, beating Permira, a couple of months before had been done with eDreams for between 250 and 300 million euros.

Battle of the Network

To grow on the Internet, companies with greater purchasing power choose to buy rivals. Is it 450 million euros Opodo? It is certainly a high price for a website that does not appear in any of the major sales ranking. In fact, Opodo operates in nine countries its main markets being the United Kingdom, France, Germany and the Nordic countries. In the UK, for example, Opodo is not even among the top 50 online retailers, listed on the rival firms that do appear as Expedia.co.uk, Thomson Holidays, lastminute.com, Thomas Cook or First Choice. In Spain, the company operates, but is light years ahead of the big: Rumbo, eDreams atrapalo.com, etc. In France Opodo does appear in the top ten. In the last week of April was ranked seven with a market share of 1.8% (first, Travelzoo, France has a 19.44%).

There is hardly a market for hundreds of different online agencies and a large number of private clubs, vacation, tourist outlets and web coupons. The consumer will not be able to assimilate so much. In the United Kingdom have closed dozens of online agencies over the past two years, creating the lucky tourists. British agencies have created a common fund to bail out these tourists.

The full article in the August number of the journal Preferente