LastMinute.ie - How do they do it??!!

Fukuyama · 01-02-2010 3:33pm #1

So myself and the girlfriend are saying we'd like to go on three or four 'city breaks' this summer to places around the EU as well as a few hotels in Ireland in Feb, March etc... This **** can be expensive.

Then I heard an ad for LastMinute.ie during the Adrian Kennedy Phoneshow on Fm104 the other night!

I was skeptical at first - but now I'm stunned.

Three nights in new york, three star hotel, direct flights from Dublin for .... E500 per person. European destinations are even better. London for 120 euro for three nights with aerlingus and a hotel.

So does anyone know how the hell they do this? I checked identical flights on the airlines websites for the same dates etc and they were normally DOUBLE what the entire holiday would cost with LastMinute.

How is this possible??!!
Not that I'm complaining:P

MaybeLogic · 01-02-2010 3:35pm

I think they wait till the last minute and see what bargains they can pick up.

Fukuyama · 01-02-2010 3:36pm

MaybeLogic wrote: »

I think they wait till the last minute and see what bargains they can pick up.

But some of these deals are for weeks, even months in the future!

Cuddlesworth · 01-02-2010 3:37pm

Dean0088 wrote: »

So myself and the girlfriend are saying we'd like to go on three or four 'city breaks' this summer to places around the EU as well as a few hotels in Ireland in Feb, March etc... This **** can be expensive.

Then I heard an ad for LastMinute.ie during the Adrian Kennedy Phoneshow on Fm104 the other night!

I was skeptical at first - but now I'm stunned.

Three nights in new york, three star hotel, direct flights from Dublin for .... E500 per person. European destinations are even better. London for 120 euro for three nights with aerlingus and a hotel.

So does anyone know how the hell they do this? I checked identical flights on the airlines websites for the same dates etc and they were normally DOUBLE what the entire holiday would cost with LastMinute.

How is this possible??!!
Not that I'm complaining:P

As long as the cost of having somebody on the plane is less then the cost of the fuel, the the airline will try their best to get people onboard for that price. This only becomes a possibility at the last minute though.

pp_me · 01-02-2010 3:38pm

MaybeLogic wrote: »

I think they wait till the last minute and see what bargains they can pick up.

You really "pushed out the boat" for that answer.

SubrbanOblivion · 01-02-2010 3:38pm

Dean0088 wrote: »

But some of these deals are for weeks, even months in the future!

The majority of people will pay full price and not think twice about it, so hotels and airlines can afford to take offers and run unadvertised deals to get those last seats/rooms booked.

RobbieTheRobber · 01-02-2010 3:39pm

Dean0088 wrote: »

How is this possible??!!
Not that I'm complaining:P

Here is someone case study on lastminute.coms business model.
http://www.palgrave.com/business/burns/students/pdf/17%20Lastminute.com.pdf

When you have read it come back and tell us how it works!

MaybeLogic · 01-02-2010 3:40pm

pp_me wrote: »

You are really "pushed out the boat" for that answer.

Sometimes it's as if the answers are channeled through me.

pp_me · 01-02-2010 3:42pm

MaybeLogic wrote: »

Sometimes it's as if the answers are channeled through me.

Its as if your "logic" is an unbreakable code.

Heh.. See what i did there..

Shotgun Please.

AnonoBoy · 01-02-2010 3:49pm

Fraud? Magic? Blackmail?

Who knows?

MaybeLogic · 01-02-2010 3:49pm

pp_me wrote: »

Its as if your "logic" is an unbreakable code.

Maybe.

Shotgun Please.

You first.

Fukuyama · 01-02-2010 3:50pm

RobbieTheRobber wrote: »

Here is someone case study on lastminute.coms business model.
http://www.palgrave.com/business/burns/students/pdf/17%20Lastminute.com.pdf

When you have read it come back and tell us how it works!

Read it

IT seems fairly simple actually.

Firstly, it's not specifically about LAST MINUTE deals which airlines and hotels will toss up for grabs because the seats aren;t filled. Although they still do that.

Many of the seats are predicted by the airlines to be empty. I.e. they know that not many people will be traveling on a date three months in the future, as such they'll tell last minute to put 15 seats up for 'break even' price. Then, as the flight gets closer, if there's more room they'll throw up more seats. Same goes for hotels.

It also seems to be geared more towards younger people who maybe have more flexible jobs, living arrangements and family life (or lack thereof).

Pretty fecking cool. Well I know I won't be paying top dollar for flights and hotels again!

- Dean