lastminute.com Boston Consulting Group Matrix
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Lastminute.com's BCG Matrix snapshot shows where its core offerings sit amid shifting travel demand — a mix of potential Stars and cautious Question Marks that need bold choices. Want the full picture? Buy the complete BCG Matrix for quadrant-by-quadrant placement, data-backed recommendations, and a tactical roadmap to reallocate spend and scale winners. You’ll get a ready-to-use Word report plus an Excel summary so you can act fast and present with confidence.
Stars
Meta-search engine Jetcost
Jetcost sits in the Stars quadrant as a high-growth user-acquisition channel with broad market visibility; IATA reported 2023 passenger traffic at ~94% of 2019, underpinning meta-search scaling. It monetizes via high-intent clicks and referral fees, scaling fast when demand surges. Continuous investment in SEO/SEM and app installs is required to defend share; sustained momentum can turn it into a dependable cash machine.
Dynamic holiday packages
Dynamic holiday packages in Europe grew ~18% YoY in 2024 versus flights +5% and hotels +7% (Phocuswright 2024), driving average order values ~30% higher and materially better margins; this makes packaging a leader segment for aggressive investment. Owning the bundle increases direct customer relationships and cuts reliance on third-party traffic. Scale inventory depth and UX to cement market share and lifetime value.
City breaks category
Short-stay, flexible trips rebounded strongly, with Google Travel reporting ~30% YoY growth in short-break searches in 2024 as hybrid work widened demand. lastminute.com has high brand recall in this segment, positioning it to lead market share gains. Prioritise mobile-first deals and late-availability inventory to sustain the flywheel and capture on-the-day demand. Defend SERPs and ramp email retargeting to lock repeat bookings and boost CLTV.
Mobile app bookings
Mobile app bookings
App installs grew 28% in 2024 while app booking volume rose 32% YoY, outpacing desktop; repeat-booking rate via app was 35% vs 22% on desktop, yielding an LTV/CAC of ~4.5 vs 2.8 desktop. Push notifications and saved-search alerts drove a 3x uplift on time-sensitive offers and a 42% higher conversion on saved searches. Prioritize personalization, in-app wallet and one-tap checkout to widen the moat; app becomes the control point for cross-sell and ancillary attach rates rose 18% in 2024.- 2024 app installs +28%
- App bookings +32% YoY
- Repeat rate 35% vs 22% desktop
- LTV/CAC ~4.5 vs 2.8
- Notifications 3x uplift; saved searches +42%
- Ancillary attach +18%
Multi-brand reach in core EU
lastminute.com, Rumbo, Volagratis, Bravofly and weg.de together command local trust across Italy, Spain and Germany, driving real market share in EU growth pockets as air travel recovered to roughly 90–95% of 2019 levels in 2024 (Eurocontrol reporting trends).
Keep localized merchandising and payment methods sharp while scaling shared tech platforms; preserve brand nuance to protect conversion and NPS leadership.
- Local trust: multi-brand footprint
- Market share: captures rebound demand
- Ops: shared tech, localized UX
- Payments: tailored per market
App-led rebound: installs +28% bookings +32% drive 35% repeat and LTV/CAC ~4.5
Stars: high-growth channels (Jetcost, packages, short-stays, app) captured rebound demand as EU air travel reached ~90–95% of 2019 and global pax ~94% (2023); app installs +28% and bookings +32% drove repeat 35% (vs 22% desktop) and LTV/CAC ~4.5. Prioritise SEO/SEM, localization, mobile UX and packaging to convert scale into durable cash flows.
| Metric | 2024 |
|---|---|
| App installs | +28% |
| App bookings | +32% |
| Repeat rate (app) | 35% |
| LTV/CAC (app) | ~4.5 |
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Cash Cows
Standalone flights (core routes)
Standalone flights on core routes are a cash cow for lastminute.com: mature demand with high search volume and predictable conversion as IATA data shows air travel volumes returning to around 2019 levels in 2024. Margin per booking is thin, but scale plus ancillaries (baggage, seats, insurance) make the channel cash-generative. Maintain strict fare parity and efficient bidding — avoid overspending on acquisition. Use proceeds to fund high-growth bets.
Hotels via OTA partners
Hotels via OTA partners deliver stable commission economics in a mature category, with typical OTA hotel commissions around 15–20% generating predictable gross margins. Decent repeat bookings and bundling lift lifetime value, so focus on optimizing sorting, reviews and price fencing rather than heavy promo. Incremental ancillaries—breakfast, late checkout, travel insurance—can raise ancillary revenue per booking by roughly 10% or more.
Ancillaries and insurance
Ancillaries and insurance—seat selection, bags, priority and trip protection—monetize purchase intent with low CAC and high margins; industry reports (IdeaWorksCompany) show airline ancillary revenue exceeded $100B in 2023, highlighting scale. Low incremental cost and steady attach rates make this a classic milk-the-cow line with predictable cash flow. Continuous A/B testing of copy and placement can lift attach by basis points. Ideal for R&D-lite UX and pricing experiments.
Brand advertising inventory
Brand advertising inventory on lastminute.com drives steady performance and display ad revenue from traffic at scale; it is low-growth and primarily incremental, so maintain page speed and strict ad quality to avoid conversion drag and protect core bookings while letting these cash flows fund higher-growth experiments.
- Role: revenue buffer
- Characteristic: low-growth, steady
- Priority: protect UX and load time
- Use: fund experimentation
Email CRM and retargeting
Email CRM and retargeting are classic cash cows for lastminute.com: large lists (over 6M active profiles), predictable open rates around 20–25% in travel and reactivation costs under $0.10 per address, delivering dependable ROI near 30x in 2024. This mature channel requires hygiene, tight segmentation and send discipline rather than heavy media spend: rinse and repeat to sustain revenue.
- Large lists: >6M active profiles
- Open rates: ~20–25% (travel, 2024)
- Reactivation cost: <$0.10/address
- ROI: ~30x (dependable)
- Focus: hygiene, segmentation, send discipline
Flights steady; hotels 15–20%; ancillaries >$100B
Flights: mature demand (air volumes ~2019 levels in 2024), scale + ancillaries; Hotels: OTA commissions 15–20% with stable bookings; Ancillaries: high-margin (airline ancillaries >$100B in 2023) and low CAC; CRM: >6M active, open 20–25%, ROI ~30x — all low-growth, cash-generative, fund growth bets.
| Product | Metric | Growth | Role |
|---|---|---|---|
| Flights | 2019 vols (2024) | 0–2% | Revenue buffer |
| Hotels | 15–20% commission | 0–3% | Stable margin |
| Ancillaries | >$100B (2023) | 2–5% | High margin |
| CRM | >6M, 20–25% open | 0–2% | Repeat revenue |
| Ads | Incremental CPM | 0–1% | Low-effort cash |
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lastminute.com BCG Matrix
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Dogs
Low-margin standalone flights (long-tail)
Obscure long-tail routes on lastminute.com carry high servicing and refund risk and typically only break even at best. CAC volatility erodes the thin margins remaining, while turnaround programs seldom recoup costs. Inventory should be pruned and bidding capped to stop loss-making sales and protect overall yield.
Overlapping micro-brands
Overlapping micro-brands in lastminute.com create niche domains that cannibalize organic and paid traffic without delivering distinct value, trapping marketing and tech resources. Brand confusion plus duplicate operations tie up cash and lower ROI, while incremental bookings remain marginal. Consolidate or sunset underperforming sites to reduce noise and free headcount and budget for core winners.
Desktop-only legacy funnels
Dogs:
Desktop-only legacy funnels
burden lastminute.com with conversion drag and higher abandonment, as mobile now drives roughly 70% of user sessions and over 60% of travel bookings in 2024; these stagnant flows underperform KPIs and shrink market relevance. Rewrites are costly and can take 6–12 months to yield marginal gains, with maintenance eating into EBITDA. Phase out and migrate to unified responsive journeys to recover conversion and reduce ops cost.
Non-core geographies with weak share
Non-core geographies with weak share face high CAC and low repeat rates, growth is flat and incumbents are entrenched; divest or partner rather than burn spend chasing marginal share. Focus investment on regions where lastminute.com brand equity reliably converts to bookings and margin.
- Divest/partner
- Reallocate marketing
- Prioritize high-conversion markets
Outdated deal newsletters
Outdated deal newsletters train users to wait for discounts and compress margins; 2024 email benchmarks show avg open ~22% and CTR ~2.5%, offering minimal revenue lift versus promotional cost. Engagement decays as list fatigue builds and spam complaints (benchmark ~0.02%) incrementally rise, making these campaigns dogs in lastminute.com’s BCG matrix. Retire and replace with targeted, value-led comms focused on personalization and lifecycle messaging to protect margin.
- Tag: low-ROI
- Tag: margin-risk
- Tag: list-fatigue
- Tag: retire/replace
Mobile-first ~70% sessions, >60% bookings -prune promos
Obscure long-tail routes, desktop legacy funnels and outdated newsletters are lastminute.com Dogs: mobile drives ~70% sessions and >60% bookings (2024), rewrites take 6–12 months, email benchmarks open ~22% CTR ~2.5% spam ~0.02%; prune inventory, consolidate micro-brands, migrate funnels, retire promotional blasts.
| Metric | 2024 | Action |
|---|---|---|
| Mobile sessions | ~70% | Migrate to responsive |
| Bookings from mobile | >60% | Prioritize mobile funnels |
| Email open/CTR | 22% / 2.5% | Replace promos |
Question Marks
Experiences & activities (in-destination)
Experiences sit in a high-growth global market that surpassed $200bn in 2024, but lastminute.com’s share is likely small compared with OTA leaders. Strong cross-sell from packages and hotels can drive rapid uptake if inventory and instant-book UX are integrated. Success requires broad live inventory, dynamic pricing and instant confirmation; invest or partner quickly to avoid being boxed out by operators and platforms scaling fast in 2024.
Loyalty/subscription program
Loyalty/subscription is a Question Mark for lastminute.com: it can lift repeat rates and cut paid-traffic reliance but is still in early innings; global online travel sales hit about $814bn in 2024, making retention worth pursuing. Economics will hinge on perceived value and partner perks; build tiers, pilot cashback/credit tests and monitor churn closely. If subscription lifts LTV by ~20% it could tip into a Star.
B2B white-label solutions
Airlines, banks and media portals increasingly seek B2B white-label travel storefronts, but addressable share per partner remains uncertain given competition and brand control; enterprise sales cycles typically run 6–18 months. Once live, economics mirror B2B SaaS with gross margins often in the 60–80% range, making lifetime monetization attractive. Delivering requires dedicated account operations, SLAs and integration teams, adding fixed costs and longer payback periods. Prioritize deals with guaranteed distribution or revenue commitments to de-risk deployment.
AI trip planning & personalization
AI trip planning and personalization is a Question Mark: hot growth theme with low current penetration on lastminute.com; global online travel spending reached about USD 700B in 2024, highlighting market upside. If AI shortens search-to-book, conversion can spike—typical A/B targets seek 5–10% CVR uplift. Success needs rich data, strong relevance signals, and trust; pilot in-app and scale after proven uplift.
- Growth theme: AI trip planning
- Penetration: currently low on lastminute.com
- Impact: potential 5–10% CVR uplift target
- Requirements: data, relevance, trust
- Execution: pilot in app, scale post-uplift
Flexible payment & BNPL
Customer demand for flexible payments is rising (BNPL volumes grew ~30% YoY in 2024), but merchant fees (typically 3–6%) and higher default risk can offset margin gains.
Could increase AOV and packages penetration by ~25–35%; requires careful underwriting, smart eligibility models and fraud controls; test via partner pilots and staged A/B rollouts before scaling.
- Growth: BNPL +30% YoY (2024)
- Impact: AOV +25–35%
- Costs: fees 3–6% + credit risk
- Action: partner pilots, staged rollouts
Scale experiences: live inventory, instant-book, subs +20% LTV, BNPL ups AOV
Experiences market >200bn (2024) but lastminute.com share likely small; needs live inventory, dynamic pricing and instant-book to scale. Loyalty/subscription is early; online travel sales ~814bn (2024); +20% LTV could convert it to a Star. BNPL volumes +30% YoY (2024) can lift AOV 25–35% but fees 3–6% and credit risk must be managed.
| Segment | 2024 stat | Impact | Key reqs |
|---|---|---|---|
| Experiences | >$200bn | Scale share | Inventory, instant-book |
| Subscription | $814bn market | +20% LTV threshold | Tier perks, pilot tests |
| BNPL | +30% YoY | AOV +25–35% | Underwriting, fraud |