Most well known for its adverts, luxury travel service Secret Escapes managed to raise $60 million (£38 million) in its latest funding round; the third in the company’s history.
Investors included Google Ventures, Atlas Venture, Index Ventures and Octopus Investments. Quite an assortment of venture capital with over 1,000 investments between all four branches.
Secret Escapes offers cheap deals at luxury destinations to its members, with price cuts of over 80 per cent at some of the most established hotels in the world. The 19 million members get to jump on the deals, with Secret Escapes able to promise an active audience for the price drop.
The goal is to make sure all hotels and resorts are full, even if the hotel needs to slash the price. Secret Escapes claims to have sold two million room nights since it first launched four years ago, with the company only recently jolting into the UK market.
More acquisitions appear to be in order with the £60 million in funding. Secret Escapes may want to bulk up on advertising or marketing talent, to grab more members.
Secret Escapes is not the first company to capitalise on low demand by cutting the price with flash sales. Expedia changed the experience of flying by offering comparison of airline prices and Amazon has always lowered prices to draw in more customers.
That said, Secret Escapes seems to have nabbed a market that was unwilling to budge a few years ago. Now, an escape to a countryside bed and breakfast or high class London hotel is affordable for most travellers.