Just a few months ago, we wrote about Luxury Link, a nearly 20-year-old website that offered discounted VIP packages to luxury hotels and resorts, partnering with the flash-sale site Gilt Groupe.
The goal, Luxury Link CEO Scott Morrow said at the time, was to grow both companies. He said the deal had the potential to help him double his company’s size.
But last week, Luxury Link apparently quietly shut down, leaving prepaid customers holding the bag without even an apology.
In an email to customers reported on at least two websites, Luxury Link said it had entered into a General Assignment for the Benefit of Creditors, which is analogous to bankruptcy with a liquidation of assets.
“As a result, Luxury Link will not be able to honor the travel you have booked through it,” the email reportedly said, according to Forbes.com and others. “We suggest you contact your credit card issuer for your options regarding any charges to your credit card. You may also want to contact the destination property directly to see what arrangement you can make with it. As Luxury Link is no longer operating, it will be unable to assist you in rearranging your travel plans or obtain a refund."
The company’s website was still live early this week but had no notice of its closing. Luxury Link’s PR reps said only that the closing was a surprise to them as well, and they were no longer working with the company.
Someone did, however, pull Luxury Link’s Facebook page, where customers last week began posting warnings to others against doing business with the company.
In January, Luxury Link took the place of Jetsetter on Gilt, which shook up the luxury travel world in 2009 when it partnered with Jetsetter to offer deeply discounted travel in invitation-only, online sales. TripAdvisor bought Jetsetter from Gilt in 2013.
An emailed statement from a Gilt spokesperson said: "Luxury Link was an independent company that was not owned or operated by Gilt and had been in business for over 15 years. However, we do understand that many Gilt members booked trips on Luxury Link, in part due to the marketing relationship it had with Gilt.
"Last week we notified the Gilt members that we believe may have made an upcoming travel booking through Luxury Link," the statement continued. "As the bookings occur directly with Luxury Link, and not through Gilt, we don't have specific details, but we are doing our best to try and help our customers work through this unfortunate and inconvenient experience."
In our February interview about Luxury Link’s deal with Gilt, Morrow said he hoped the deal would raise the visibility of Luxury Link, and, most importantly, bring in that coveted group of next generation luxury travelers, the millennials.
This report was updated May 28 at 12:30 p.m. Eastern. to include a statement from Gilt about its relationship with Luxury Link.