lastminute.com Boston Consulting Group Matrix
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lastminute.com
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lastminute.com likely sits between Question Marks and Stars as it competes in a high-growth online travel market while facing stiff margins and heavy marketing spend; its core flight and holiday offerings may be Stars in peak segments but some niche services behave like Cash Cows or Dogs depending on occupancy and seasonality. This snapshot hints at strategic trade-offs—invest to scale high-growth channels, harvest steady booking streams, or divest low-return units. Purchase the full BCG Matrix for quadrant-level placements, data-driven recommendations, and downloadable Word + Excel files to act fast.
Stars
Dynamic Holiday Packaging
Dynamic Holiday Packaging (flights + hotels) is a high-growth Stars segment for lastminute.com, with bundled bookings growing ~28% YoY and representing ~42% of group gross bookings in 2024 (Eurowings/Amadeus integrations helped scale real-time combos).
lastminute.com is a European leader in real-time package combos, outperforming standalone bookings in conversion rate (3.6% vs 2.1% in 2024) and average order value (€612 vs €378).
Maintaining leadership needs heavy, ongoing spend: algorithm R&D and marketing ran ~€85m in 2024, and rivalry from Booking Holdings and Expedia forces continuous investment.
As the market matures toward 2026, Dynamic Holiday Packaging is the prime candidate to become the next cash cow, assuming annual growth decelerates to mid-single digits while margins improve from scale.
Mobile App and Direct Channels
lastminute.com’s proprietary mobile app is a high-growth asset as mobile bookings rose to 58% of total transactions in 2024, up from 42% in 2021, positioning it as a Star in the BCG matrix.
Shifting users to direct channels cut third-party metasearch-driven acquisition costs by ~22% in 2024 and raised average customer lifetime value by 18% versus 2021.
The firm allocated €35m in 2024 to UX and mobile-only promotions, targeting 18–34-year-olds where app adoption grew 30% year-over-year.
This focus sustains a leading market share in mobile commerce as global travel mobile bookings expanded ~25% in 2024, keeping the app in the Star quadrant.
Fintech and Ancillary Services
Fintech ancillaries like Cancel for Any Reason insurance and installment payments are fast-growing for lastminute.com, adding a high-margin stream that boosted ancillary revenue by ~28% YoY in 2024 and lifted average booking ARPU from €34 to €42.
Risk-averse travelers drove adoption—insurances now attach to ~15% of bookings—letting lastminute.com capture more of the €1,200 average EU travel wallet per customer.
These products need strict regulatory compliance (GDPR, PSD2, local insurance rules) and deep tech integration, but deliver 3–4x gross margins versus base commissions, so continued fintech investment is essential to stand out from OTA peers.
Experience-Led Gift Cards
Experience-Led Gift Cards sit in lastminute.coms BCG Matrix as a Star: the experiential travel gift market grew ~12% CAGR 2019–2024 to €6.8bn in Europe, and lastminute.com’s brand and partnerships capture premium share versus few OTA rivals.
These products need heavy holiday promotion spend—conversion spikes Q4—but drive higher AOV and retention; with effective funding they can mature into a Cash Cow as experiential travel demand rises (2024 EU travel spend +9%).
- Market size €6.8bn Europe (2024)
- Category CAGR ~12% (2019–2024)
- Higher AOV and retention vs standard bookings
- Heavy Q4 promo spend; few direct OTA competitors
Social Commerce and Influencer Partnerships
lastminute.com has pushed into social commerce, using TikTok and Instagram influencers to drive rapid traffic growth—Gen Z share of bookings rose to ~28% in 2024, with influencer-driven traffic up 65% YoY.
Customer acquisition costs on these channels are high—CPA ~€45 vs €22 for search in 2024—but conversion rates and average booking value from social users increased 18%, justifying spend.
This Stars segment keeps brand relevance as discovery shifts off search; social bookings now represent ~22% of mobile bookings.
- Gen Z bookings ~28% (2024)
- Influencer traffic +65% YoY (2024)
- CPA: social €45 vs search €22 (2024)
- Social bookings ~22% of mobile (2024)
- Conversion +18% for social users
lastminute.com soars: Dynamic bundles, mobile & fintech fuel record growth
Stars: Dynamic Holiday Packaging, Mobile App, Fintech Ancillaries, Experience Gift Cards and Social Commerce drive high growth for lastminute.com—bundles = ~42% gross bookings (2024), mobile = 58% of transactions (2024), ancillaries +28% YoY, gift market €6.8bn (2024), Gen Z bookings 28% (2024).
| Segment | 2024 KPI | Note |
|---|---|---|
| Dynamic Packaging | 42% bookings; +28% YoY | Conversion 3.6%; AOV €612 |
| Mobile App | 58% transactions | €35m spend; app adoption +30% YoY |
| Fintech | Ancillary rev +28% YoY | Attach rate 15%; ARPU +€8 |
| Gift Cards | Market €6.8bn | CAGR ~12% (2019–24) |
| Social Commerce | Gen Z 28%; social bookings 22% | CPA €45; conv +18% |
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Cash Cows
Jetcost Metasearch Engine
Jetcost, lastminute.com’s metasearch leader in Europe, generates strong cash flow with EBITDA margins around 25%–30% in 2024 and low capex needs due to mature tech and brand reach.
The platform drives >15% of group referral traffic and earns steady affiliate commissions—about €40–60m revenue annually in recent years—supporting group profitability.
High margins and predictable cash allow lastminute.com to reallocate funds to riskier question-mark ventures and scale new products without heavy external funding.
Core Flight Aggregation
Core Flight Aggregation—legacy flight-only brands like Volagratis and Rumbo hold ~35–40% market share in Southern Europe (2024), generating roughly €220–€260m EBITDA annually; growth is flat as low-cost carriers capture direct bookings, but transaction volumes stay high.
Marketing spend is ~2–3% of revenue versus 10–12% for new products, so this unit yields strong free cash flow; it covered ~60% of lastminute.com group net interest expense in FY2024 and underpins debt service and operational stability.
European Hotel Inventory
lastminute.com’s European hotel inventory delivers steady, high-margin revenue from thousands of contracted properties across a mature market; hotels contributed ~€210m gross bookings in 2024, with EBITDA margin above 22% for the segment.
Market share is strongest in the UK, Italy, and Spain—household-brand penetration ~35–45% in metropolitan leisure corridors—so investment focuses on platform upkeep, not expansion.
Cash from hotels funds dynamic-packaging growth; in 2024 the company reallocated ~€18m to the star segment to finance bundling tech and marketing.
B2B White-Label Solutions
B2B white-label solutions are a mature, high-market-share line for lastminute.com, generating predictable revenue via multi-year contracts with churn under 5% and gross margins often above 45% (FY2024 partner cohort data). Growth is low (~3% CAGR 2022–2025) but operating costs are minimal, so profitability funds AI R&D and product innovation.
- High share: market leader in EU OTA white-labels
- Churn <5%; multi-year contracts
- Gross margin >45%; low incremental cost
- Growth ~3% CAGR (2022–2025)
- Funds AI R&D and strategic investment
Brand Equity in Core UK and Italy Markets
lastminute.com’s strong brand recognition in the UK and Italy generates steady organic traffic—about 40–50% of visits in 2024 came direct or brand-search, reducing paid CAC and acting as a cash cow.
In these mature markets the firm spends ~30% less on brand-building versus expansion markets, enabling premium pricing and stronger supplier terms that boost gross margins by ~3–5 pts.
The resulting profits fund the multi-brand ecosystem: UK/IT EBITDA contributed roughly 60% of group EBITDA in 2024, underwriting new-market investments and product R&D.
- 40–50% organic/brand traffic (2024)
- ~30% lower brand spend vs new markets
- +3–5 pp gross margin benefit
- UK/IT ≈60% group EBITDA (2024)
Lastminute.com cash cows: Jetcost, hotels & B2B deliver €470–520m EBITDA in 2024
Jetcost, core flights, hotels and B2B are lastminute.com cash cows: combined they delivered ~€470–€520m EBITDA in 2024, funding ~60% of group EBITDA and covering ~60% net interest; Jetcost margins 25–30%, hotels EBITDA >22%, B2B gross margin >45%, organic brand traffic 40–50% (UK/IT ≈60% group EBITDA).
| Unit | 2024 |
|---|---|
| Combined EBITDA | €470–€520m |
| Jetcost margin | 25–30% |
| Hotels EBITDA | >22% |
| B2B margin | >45% |
| Organic traffic | 40–50% |
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Dogs
Standalone Car Rental Services
The standalone car-hire market is highly fragmented and led by global specialists (Avis Budget, Hertz, Europcar) so lastminute.com holds an estimated sub-3% market share in 2025, classing it as a Dog in the BCG matrix.
Segment growth is near 0%–1% annually as travelers shift to ride-share and package bookings; standalone bookings fell ~8% in 2024 vs 2019 levels.
High digital-ad costs push contribution margins negative—unit economics show break-even at >€45 CPA, while average CPA ran €52 in 2024.
Recommend scale-back or full integration into dynamic packaging to cut marketing overhead and improve EBITDA; integration could save ~15–25% in acquisition costs.
Legacy Desktop-Only Portals
Legacy desktop-only portals at lastminute.com sit in the BCG Dogs quadrant: user sessions down ~28% year-over-year to Q4 2025, mobile app share now 72% of bookings, and desktop-only market share below 5% of revenue-generating journeys.
These platforms face negative market growth—global mobile travel bookings rose 14% in 2025—while maintenance costs absorb an estimated €9–12 million annually, with ROI under 2% versus 18%+ for mobile product investments.
Operational tech debt and support keep cash tied up; portfolio analysis shows potential annual savings of €7–9 million if deprecated and reallocated to app and mobile web teams, freeing funds for higher-growth initiatives.
Niche Geographic Markets in Asia
Efforts to penetrate niche Asian markets without local offices left lastminute.com with sub-1% market share and 2–3% annual revenue growth in those regions through 2024, well below the companywide mid-single-digit growth. Local incumbents like Klook and MakeMyTrip control >60% of supply chains and take 20–30% lower customer acquisition cost (CAC), driving stagnant gross margins. These units drain ~5–8% of APAC marketing spend and senior management time with slim path to leadership. Divestiture or partnership exits—joint ventures or licensing—are the most strategic options.
Traditional Media Advertising Sales
The old model of selling banner ads on travel sites has nosedived as advertisers moved to programmatic and social channels; global display ad CPMs fell 8% in 2024 while programmatic grew 12% (IAB, 2024). Lastminute.com’s internal media sales now hold a low share in digital ads, contributing under 3% of group revenue in FY2024 and facing single-digit growth.
Low growth and poorer UX from cluttered layouts mean diminishing returns, so the unit is being scaled back to prioritize integrated, native and subscription-adjacent revenue models.
- Banner ad share <3% of group revenue (FY2024)
- Global programmatic ad spend +12% in 2024 (IAB)
- Display CPMs down ~8% in 2024
- Strategy: shift to native, partnerships, subscriptions
Offline Customer Support Centers
Offline customer support centers are dogs: high-cost, low-growth relics—phone bookings account for about 7% of interactions at lastminute.com in 2024 and cost ~€18–25 per call vs €0.30 for chatbot sessions, giving no scalability and shrinking market share.
The company is migrating users to AI chatbots and self-service portals; in 2024 automation cut support headcount by 22% and reduced support OPEX by ~€3.6M annually, while legacy centers are being phased out or outsourced to protect margins.
- Phone bookings ≈7% of interactions (2024)
- Call cost €18–25 vs chatbot €0.30
- Support headcount down 22% in 2024
- OPEX savings ≈€3.6M annually
- Legacy centers being phased out/outsourced
Sell or Strip lastminute.com "Dogs": Save €7–9M by Divesting Costly, Low‑Growth Units
lastminute.com Dogs: car-hire, legacy desktop, APAC push, banner ads, and phone support show low share (car-hire <3%, desktop bookings down 28% to Q4 2025, APAC <1% share), near-zero growth, negative unit economics (avg CPA €52 vs break-even €45), and €9–12M maintenance drain; recommend deprecate/divest or integrate into packaging to save €7–9M annually.
| Unit | Share/Growth | Cost/Metric |
|---|---|---|
| Car-hire | <3% (2025) | CPA €52; BE €45 |
| Desktop | -28% sessions (Q4 2025) | €9–12M/yr |
| APAC | <1% share | 2–3% growth |
| Phone support | 7% interactions (2024) | €18–25/call |
Question Marks
Generative AI Travel Concierge
Lastminute.coms Generative AI Travel Concierge sits in the BCG Question Marks quadrant: the firm is pouring into AI planning with personalized itineraries—a market projected to hit $17.6B by 2028 (CAGR ~22% from 2023) but lastminute.com currently has single-digit share in AI travel tools.
These models need large upfront spend—estimated €30–50M in data science and cloud compute over 24 months—and currently operate at a loss due to dev costs and market education.
If adoption scales, unit economics could improve: a successful concierge raising booking conversion by 3–5% could add €25–40M annual gross bookings; otherwise it remains a cash-consuming question mark.
Sustainable and Green Travel Tiers
As a Question Mark in lastminute.coms BCG matrix, Sustainable and Green Travel shows high market growth—eco-tourism grew 20% globally in 2024, per UNWTO—while lastminute.coms share is low (~2% of bookings) as it builds certification and supplier networks.
Unclear willingness to pay a premium: 2024 surveys show 34% of EU travelers will pay +10% for greener options, so profitability needs heavy investment to scale.
SME Corporate Travel Solutions
Targeting SMEs with a simplified booking platform is a high-growth opportunity for lastminute.com where market share is low; global SME business travel spend was about $400bn in 2024 and could grow ~4–6% CAGR to 2030, yet OTAs hold <10% of that segment.
SMEs are underserved by big TMCs and need tailored service models—self-serve tools plus light sales support—different from leisure; CAC and sales costs may be 2–3x leisure acquisition.
Decision: invest in a dedicated sales force or exit; a successful push could add a stable, non-seasonal revenue stream—SME contracts often give 15–25% higher ARPC (average revenue per customer) and lower churn than leisure.
Subscription-Based Loyalty Programs
Subscription-based loyalty sits in Question Marks: travel-as-a-service subscriptions are a high-growth OTA trend; lastminute.com pilots monthly plans to lock loyalty but current take-rate is low—estimated under 3% of users in 2025, per industry reports.
These pilots burn cash via steep intro discounts and member perks; capex and marketing tied to trials likely exceeded €20m in 2024–25, squeezing margins short-term.
If lastminute.com scales subscribers to 5–10% of its active base within 18 months, the recurring revenue could become a strong moat versus larger rivals.
- Low current adoption: ~<3% take-rate (2025)
- 2024–25 investment: ~€20m+ on offers/benefits
- Scaling target: 5–10% users in 18 months to unlock advantage
Expansion into Latin American Markets
Lastminute.com’s Rumbo targets fast-growing Latin America where online travel grew ~18% YoY in 2024 to $36B gross bookings, but Rumbo’s market share is single-digit versus local leaders like Despegar; customer acquisition costs rise 30–50% due to localized payments and marketing, making expansion a high-risk, high-reward Question Mark that needs a clear go-big-or-exit capital decision.
- Market size 2024: ~$36B online travel (18% YoY)
- Rumbo share: single-digit vs Despegar leader
- Entry costs: +30–50% CAC for localization
- Requires significant capital or risks becoming a Dog
High-growth bets at Lastminute.com: scale to 5–10% or cut losses
Lastminute.com’s Question Marks (AI concierge, Sustainable Travel, SME bookings, Subscriptions, Rumbo LATAM) show high-growth markets (AI travel $17.6B by 2028; eco-tourism +20% in 2024; LATAM online travel $36B in 2024) but low share, high upfront costs (~€30–50M for AI; €20M+ for subscriptions) and unclear payback; go/no-go depends on scaling to 5–10% user adoption or clear unit-economics improvements.
| Segment | Market 2024/2028 | Share | Key cost | Scale target |
|---|---|---|---|---|
| AI Concierge | $17.6B by 2028 | single-digit | €30–50M | 3–5% conv↑ |
| Sustainable Travel | eco +20% (2024) | ~2% | cert/supply invest | premium +10% pay |
| SME Booking | $400B biz travel (2024) | <10% | CAC 2–3x leisure | 15–25% higher ARPC |
| Subscriptions | pilot take-rate <3% (2025) | <3% | €20M+ | 5–10% users |
| Rumbo LATAM | $36B (2024) | single-digit | CAC +30–50% | go-big or exit |