LateRooms eyes overseas markets as web marketing switch boosts profits

TUI Travel’s late availability bedbank LateRooms has reported a triple digit lift in profits after outsourcing its search engine marketing.

The business also has its eye on expansion into markets in Australia and Russia.

Efficient Frontier took over paid search last autumn. Glyn Powditch, head of business analysis at said: “In January 2009 we saw a 60% rise in bookings and a 128% increase in profit compared to January 2008; and all this was achieved with only a 33% increase in our paid search spend.”

Previously,’s paid search was carried out in-house.

The decision to outsource its paid search “freed up internal resources to concentrate on other valuable marketing activities such as Search Engine Optimisation.”

Efficient Frontier was also able to offer a scalable platform for SEM, which laterooms will use as it expands across key European markets including France, Germany and Soain.

Powditch noted that the agency, which manages more than $750m of search spend budgets a year, operates around applied mathematics, which is how laterooms’ in-house team formerly operated.

“Whilst we had a talented team of mathematicians working in-house, we recognised that it would be impossible for us to employ the number of high quality experts required to apply complex mathematical theory to business problems on a day to day basis,” Powditch explained.

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