A small travel search company shocks everyone.
Hipmunk is a small travel search company compared to its competitors such as the online giants Priceline and Expedia that can easily outspend on advertising. However Hipmunk has a following for its simple and unique hotel and flight search service which attracts consumers to it.
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The company has been busy in finding new ways to market itself that does not require spending huge amounts. The company recently made a deal with Yelp, the crowd-sourced review site, which allows people to make bookings through Hipmunk without ever leaving the Yelp site.
With Yelp on its side Hipmunk has decided to take this way of advertising to the next level as it announced to strike a deal with Yahoo which would allow consumers to book flights and hotels through Hipmunk on the site.
Adam Goldstein, the chief executive and co-founder of Hipmunk stated that Yahoo and Yelp agreements are the first of a number of such deals the company plans to announce and more good news is awaiting its customers.
Although Hipmunk has raised $40 million in venture capital it did not indulge itself in television advertising like its competitors. Adam Goldstein stated that the company did not spend on commercials as it would mean going head to head against competitors who spend millions a year.
Adam Goldstein did not discuss the financial details of the deals that were carried out with Yahoo and Yelp, but revealed that they would receive commissions when one of their users booked a flight or hotel. He also expressed that his company has millions of visitors each month.
Just like other online companies Hipmunk also lets you search hotels and flights from multiple providers. The unique advantage it has is something what the company calls an ‘agony’ filter, which displays the most convenient flight options first and an ‘ecstasy’ filter used for hotel searches.
Hipmunk has also not saturated its site with advertising like its competitors, which sometimes force pop-up browser windows without getting permission from users. Mr. Goldstein stated that this is a game we can also play but we rather get loyal users who regularly come back to us.
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