NEW YORK (Reuters) – In a groundbreaking move, Amazon.com Inc has joined forces with popular travel booking site Priceline to provide exclusive discounts for Prime Day, making it the first-ever online travel agency to participate in this highly anticipated shopping event.
With retail spending on the decline, American consumers have been prioritizing experiential purchases such as travel. Recognizing this trend, Amazon is expanding its offerings to entice new sign-ups, while travel companies are eager to fill hotel rooms.
During Amazon’s July 11-12 Prime Day extravaganza, U.S. members will enjoy 48 hours of incredible deals, including an additional 20% off Priceline’s Hotel Express deals, which already boast discounts of up to 60% off regular hotel rates.
Despite cost-cutting measures and unsuccessful programs, Amazon saw an opportunity with Priceline, a subsidiary of Booking Holdings. This collaboration marks the first time a travel brand is offering an exclusive U.S. Prime Day deal, further solidifying the relationship between both entities. Priceline’s advertisements can already be found across Amazon’s extensive portfolio of streaming and audio products.
Lesley Klein, the Senior Vice President of Marketing at Priceline, highlighted the importance of meeting customers where they are. “We know travelers are shopping on Amazon and booking travel with Priceline,” she stated.
According to research firm Tourism Economics, travel spending as of May 2023 revealed a year-to-date increase of 5.5%. In contrast, U.S. government data indicates that overall services spending saw an 8% rise in May compared to the previous year, while spending on goods increased by just 2%.
Despite these positive trends, hotel demand in May experienced a slight regression, falling below pre-pandemic levels for the third consecutive month, according to the U.S. Travel Association.
Booking Holdings operates several websites, and this isn’t the first instance of the company collaborating with Amazon on Prime Day deals. Prime members in Germany and Austria can currently enjoy travel credits and discounts through next year on Booking.com.
Notably, Amazon had previously attempted to launch its own hotel booking service called Amazon Destinations a few years ago, but the venture shuttered shortly after its debut.
(Reporting by Doyinsola Oladipo in New York; Additional reporting by Jeffrey Dastin in San Francisco; Editing by David Gregorio)
Credit: The Star : Tech Feed
