Travel deals stabilise Australian Group Buying market, nearly 30% of industry travel related

November 12, 2012  |   Announcements

Monday November 12, 2012

SYDNEY, AUSTRALIA – The Australian online group buying market has stabilised in Q3 2012 compared with the previous quarter with $117 million in revenue, according to the latest research from Telsyte.

Stabilisation of the industry has been mostly due to the growth in travel related group buying offers and national-based deals. Travel deals accounted for 30 per cent of the total industry revenue in Q3 2012, an increase of 60% from the previous quarter. Travel has moved from being the fourth most popular group buying category to becoming the largest category of deals.

Telsyte Senior Research Manager Sam Yip says nearly one in three group buying deals during the past quarter have been travel deals.

“Consumers are increasingly comfortable paying for higher value deals from group buying sites,” Yip says.

According to Telsyte research, the industry has put an end to the past three quarters of decline, indicating that the market stabilised in 2012.

“The stabilisation of the market has come at a great time – putting the industry in good stead leading into the holiday season,” Yip says.

“Consumers have continued to purchase products and services through group buying sites and the industry is expected to sustain year-on-year growth.”

Telsyte forecasts the group buying industry to exceed $530 million revenue in 2012 – a 7 per cent increase over 2011.

“Group buying is here to stay and it is part of the natural evolution of the local eCommerce landscape,” Yip says. “Consumers continue to purchase through group buying sites and are becoming more comfortable doing bigger transactions through these sites. The average voucher purchase price has continued to grow.”

According to Telsyte’s research, the top nine group buying sites for Q3 2012 were Groupon, Scoopon, LivingSocial, Cudo, Spreets,, Ourdeal, Ouffer, and GrabOne. These sites generated over 95 per cent of the total industry revenue.

For further information on the report or media inquiries contact:

Sam Yip
Senior Research Manager
Phone: (02) 8297 4607 or 0416 018 157

For sales and consulting enquiries please contact Foad Fadaghi on (02) 8297 4651 or

About Telsyte’s Online Group Buying Research
Telsyte has developed the most comprehensive database of group buying deals in Australia, with over 100,000 deals captured from over 80 sites to date. Deal data is aggregated to form a view on the total market. Information is available by site, city, location, category, price, discount, national vs. local, vouchers sold, etc. These data points produce a time series, derived ratios and other statistics available to clients. Telsyte has been auditing site data through a series of interviews with group buying sites and merchants, confirming deals closed and capturing other information such as average breakage rates and margins.

About Telsyte
Telsyte is Australia’s leading independent emerging technology analyst firm. Telsyte’s services help organisations make informed decisions and succeed in the Australian market. Telsyte analysts take pride in providing accurate, reliable and actionable insights and advisory services. Telsyte is a business unit of UXC Limited (ASX:UXC). For more information