lastminute.com

lastminute.com is a European online travel agency specializing in the sale of package holidays, flights, hotels, and other travel-related services. Founded during the dot-com boom, the company pioneered the concept of selling unsold travel inventory at discounted prices close to the departure date. It operates a portfolio of brands across several European markets, serving as a major digital platform in the travel sector.

History

The company was founded in April 1998 in London by entrepreneurs Brent Hoberman and Martha Lane Fox, capitalizing on the rapid growth of the Internet and the emerging e-commerce sector. Its IPO on the London Stock Exchange in March 2000 was a landmark event during the dot-com bubble, valuing the business highly despite minimal profits. In 2005, lastminute.com was acquired by the Sabre-backed Travelocity for £577 million, marking a major consolidation in the online travel industry. Following a period under Travelocity, the group was purchased in 2014 by the Bravofly Rumbo Group, led by Fabio Cannavale, and subsequently rebranded under the lastminute.com name. The merged entity was listed on the SIX Swiss Exchange in 2015, creating a pan-European travel group with headquarters in Chiasso, Switzerland, and operational hubs in London, Barcelona, and Milan.

Business model

The core business model operates as a B2C digital marketplace, connecting consumers with a vast network of travel suppliers, including airline carriers, hotel chains, tour operators, and car rental companies. It employs a dynamic pricing strategy, often offering significant discounts on unsold capacity for last-minute travel and late bookings. Revenue is primarily generated through commission from suppliers on completed bookings and through merchant models where the company buys inventory wholesale and sells it at a markup. The group also leverages meta-search marketing and its own portfolio of brands, such as Volagratis.com and Jetcost, to drive traffic and conversion across different European markets.

Services

The platform provides a comprehensive range of travel and related services, primarily focused on leisure travel. Key offerings include the sale of scheduled and charter flights, hotel accommodations, and dynamically packaged holiday packages. It also markets ancillary products like travel insurance, airport lounge access, and attraction tickets. Through its network of brands, the company caters to specific market segments, offering services from flight comparison to luxury hotel bookings. The main website and associated apps function as a digital travel agent, providing search, booking, and customer service functionalities.

Corporate affairs

The lastminute.com group is a publicly traded company on the SIX Swiss Exchange under the ticker symbol "LMN". Its corporate structure encompasses multiple consumer-facing brands across Europe, including Bravofly, Rumbo, and Volagratis.com, operating in key markets like the United Kingdom, Italy, Spain, France, and Switzerland. The group's headquarters are in Chiasso, Switzerland, with major offices in London and Barcelona. Key leadership includes Fabio Cannavale as Group CEO and a board of directors overseeing strategy. The company engages in various partnerships with airlines, hotel groups, and technology providers, and invests in digital marketing and platform technology to maintain its market position.

Criticism and controversies

The company has faced criticism over its customer service practices, particularly regarding the handling of flight cancellations, refunds, and customer complaints, issues that were exacerbated during the COVID-19 pandemic. It has been subject to investigations and fines by regulatory bodies, including the Competition and Markets Authority in the UK, concerning the display of surcharges and pricing transparency. Some industry analysts and consumer groups have also criticized certain discount claims and the clarity of its terms and conditions. Additionally, its aggressive digital marketing and cookie-tracking practices have occasionally drawn scrutiny from data protection advocates.