Lastminute.com examines media model

Lastminute.com is reviewing a number of pricing systems to evaluate if a media model can be used for its relationships with suppliers. The move follows Expedia’s announcement two weeks ago in which it unveiled a new agreement with Intercontinental Hotels Group had been signed in order for it to benefit from traffic it sends to…

Lastminute.com is reviewing a number of pricing systems to evaluate if a media model can be used for its relationships with suppliers.

The move follows Expedia’s announcement two weeks ago in which it unveiled a new agreement with Intercontinental Hotels Group had been signed in order for it to benefit from traffic it sends to the supplier’s site.

Lastminute.com UK managing director John Bevan said this week that the company is looking at some pricing models it uses across the group to gauge their suitability to the new system.

However, he suggested that flights could be an area suited to the media model, as OTAs are understood generally not to make significant revenues from flights.

Lastminute.com has declined to comment on any further details of the review, including timescale.

One airline executive told Travolution that discussions have been underway with a number of OTAs – although this not does not include Lastminute.com – for “some considerable time”.

Meanwhile, the Expedia-IHG deal has been greeted with some scepticism by other OTAs in the UK.

One agency boss, who wished to remain anonymous, said – in relation to the Expedia deal – there may be an issue over whether hotels group not taking part in a deal feel they are treated fairly in terms of positioning in search results.