In the latest move to reach young, affluent travelers who prefer the Internet to travel agents, Jetsetter is expanding from a private sale site to full-time, upscale travel retailer.
The site, which begins testing this week, will not compete with traditional online travel agencies because of its limited scope, said Jetsetter CEO and founder Drew Patterson. Instead it represents a new online model for young and affluent travelers who want help narrowing the Internet’s seemingly limitless offerings.
"We are presenting fewer things, but the right things," Patterson said. "They are not looking for just any product; they looking for something with their sensibility and taste."
And while the site is an online luxury travel agent of sorts, with experts on the properties available by phone, email and social media, Patterson said he doesn’t see it as competition to brick-and-mortar agents because 88% of members surveyed said they had never used a travel agent.
"They don’t know how to get these services," he said. "They don’t even know how to find a travel agent."
Jetsetter will offer the site to about 10% of its 1 million-plus members this week, then go fully live in January, he said.
Like Jetsetter’s flash sales, Patterson said the site will only offer properties that have been visited and reviewed by Jetsetter correspondents. And the properties must be invited to participate on the site, he said. They cannot purchase a spot.
Many of the 150 or so properties that will launch with the test have already participated in flash sales on the site.
Initial partners on the retail site include Capella Hotel Group, Standard Hotels, Affinia’s the Surrey, the James New York & Chicago, Banyan Tree, Chambers New York, Fairmont, Hard Rock San Diego, Vuyani Lodge in South Africa and Le Bua at State Tower Bangkok.
The site offers search by destination, region, theme (romantic, family, adventure, etc.) and by hotel name. Filters enable members to sort through recommended vacations by preferences such as beach, romance, scene and shopping.
Though hotels make up most of the product, Jetsetter will also sometimes offer cruises and packages such as African safaris.
In addition to the detailed reviews, including notations on potential drawbacks at each property, Patterson said Jetsetter has beefed up its member services staff to make sure that travel specialists who are well versed on all the properties can respond quickly to phone, email and other inquiries.
The site was developed, he said, in response to unmet needs.
"We get a lot of email from members saying, ‘I know you had a sale a couple of weeks ago in Charleston’ or Vail … ‘and I wasn’t able to buy it at the time, but I would like to be able to go back and buy it,’" Patterson said.
Unlike the flash sales, which offer steeper discounts for limited periods when hotels or cruise lines expect low occupancy, the retail site will offer rates competitive to those found on the hotel or on OTA websites.
Patterson said the site is the first of its kind. But it is not the first attempt by a private sale site to expand its reach to a new generation of travelers: young consumers who are looking for help finding upscale experiences but have never thought to call a travel agent.
Earlier this year, Rue La La announced a partnership with Virtuoso to put together sales by Virtuoso agencies and suppliers that will include contact information for Virtuoso agents. The idea, Virtuoso said, was to introduce Gen Xers to agents who can then help them book more than the just the hotel or cruise part of their travel package.
Rue La La is also developing a site with sales that will be accessible only to Virtuoso agents and the clients they invite to join. Agents will make commissions on all purchases by their clients on that site, even if the client books directly.
Patterson said Jetsetter does not have any plans to work with agents, but he hasn’t ruled out future partnerships.
"What we are trying to figure out is how to work with agents to give our members great vacations," he said. "We haven’t announced any partnerships yet, but we are looking at what we can do to deliver that level of service."
Jetsetter was launched in September 2009 by Patterson in partnership with the Gilt Groupe, which made its name with limited but deeply discounted sales on designer clothing and accessories. Membership is by invitation only, but any member can invite anyone to join, and anyone can request an invitation on the website.
Since launching, Jetsetter said its membership has topped 1 million, and the site has sold more than 100,000 room nights in 65 countries. The company said it offers 12 to 20 flash sales per week at prices that are 30% to 50% lower than rates found elsewhere.