Luxury Link, an online travel website specializing in selling discounts at luxury hotels and resorts has apparently ceased operations, according to various reports on travel related websites (although Vacationist.com, also owned by Luxury Link Travel Group LLC continues to operate - see update below). Two hotel executives who spoke to ForbesLife.com, but did not want to be identified, said they were aware the company may have closed and was facing financial problems. (Updated May 21 @ 1:38 pm: Two travel industry executives who did not want to be quoted, but whose companies had recent business relationships with Luxury Link said it had been seeking a buyer in recent weeks. Diane McDavitt, the president and co-founder of the company apparently left several weeks before the shutdown, according to one person familiar with the situation, although her Linkedin profile has not been updated. It says, she has also been working as a consultant for Kleiner Paul Management Group since earlier this year.)
While it is not known how many consumers are impacted, in January, the company announced a partnership to provide travel for members of Gilt.com, a significant player in the online shopping space focused on fashion, accessories and home furnishings. Gilt Groupe is estimated to have $600 million in annual revenues and nine million active members. Currently, there are no travel offers visible on the Gilt website, although the press release about the partnership is still posted without any updates.
The press release at the time described the travel provider as “a luxury online destination for curated hotels and travel experiences – a sophisticated resource for savvy travelers offering luxury accommodations with signature extras at insider prices.”
(Updated May 21 @ 11:06 am: Monika Bialokur, a New York-based digital marketing executive, says she had made a booking and paid with Luxury Link via the link on the Gilt Groupe website on April 30 for a two-day getaway to Maine. The hotel, she says, never received received her money, and she is upset Gilt has yet to respond. "If they don't have a legal responsibility, they have an ethical responsibility. There clearly was an affiliation, and they should at least make a statement or respond on their Twitter account," she says. As of May 7, Gilt.com still was promoting Luxury Link on its website, according to a historic web grab of its site. Gilt officials didn't respond to enquiries as of this update.)
(Updated May 21 @ 11:35 am: Steven Schneider, President of Gilt City and Gilt Business Development, responded by email that Gilt Groupe will issue a statement later today.) (Updated May 21 @ 2:49 pm: Gilt has removed the press release announcing its partnership with Luxury Link from its website - see below - and issued the following statement: "Luxury Link was an independent company that was not owned or operated by Gilt and had been in business for over 15 years. However, we do understand that many Gilt members booked trips on Luxury Link, in part due to the marketing relationship it had with Gilt. Yesterday morning we notified the Gilt members that we believe may have made an upcoming travel booking through Luxury Link. As the bookings occur directly with Luxury Link, and not through Gilt, we don't have specific details, but we are doing our best to try and help our customers work through this unfortunate and inconvenient experience.")
On two travel related websites, Flyertalk and TripAdvisor, several customers reported getting the following notice:
Dear Consumer:
Effective immediately, Luxury Link LLC aka Luxury Link Travel Group has ceased all operations and entered into a General Assignment for the Benefit of Creditors (ABC), following which all of its assets will be sold. As a result, Luxury Link will not be able to honor the travel you have booked through it. We suggest you contact your credit card issuer for your options regarding any charges to your credit card. You may also want to contact the destination property directly to see what arrangement you can make with it. As Luxury Link is no longer operating, it will be unable to assist you in rearranging your travel plans or obtain a refund.
You will be receiving further news regarding the ABC in the next few weeks. Until then, no further information will be available.
Luxury Link Management
(Updated May 21 @ 2:07 pm: Richard Kipperman of Corporate Management Group, a La Mesa-based entity, said, his company is the assignee and will be handling the "ultimate liquidation." He said, all creditors will receive a notice. He also noted, he was behind the above email informing customers that the company LuxuryLink.com had ceased operations (although it has now been learned Vacationist.com, also owned by Luxury Link Travel Group LLC continues to take bookings). He would not comment on how many customers are impacted or how many emails were sent.)
(Updated May 22 @2:55 pm: Vacationist.com, a travel discount and flash sale site owned by Luxury Link Travel Group LLC, is still operating and taking bookings, Richard Kipperman, the assignee who is responsible for liquidating assets told ForbesLife.com. He says, customers of that site are not impacted because it is a “pass through” where Luxury Link Travel Group doesn’t collect the money, and payments are made to a third parties. Money from the liquidation of Vacationist.com and other assets will go towards paying Luxury Link creditors. The LuxuryLink.com site while still up, is not accepting transactions.
On the bottom of the Vacationist.com site, there is now a statement, “These travel arrangements are provided by the tour operators/suppliers featured on the website, which is powered by Secret Escapes Ltd, who acts as an agent for the tour operators/suppliers and is wholly independent of Luxury Link Travel Group.”
Rob Day, a director at Secret Escapes provided the following statement via e-mail: “We have a trading relationship with Vacationist.com, a Luxury Link brand. Secret Escapes isn't in any way connected to the finacial difficulties Luxury Link unfortunately find themselves in. All of our members can rest assured their vacations, and more importantly their money, are in very, very safe hands.
Earlier this year we launched a 'white label' partnership with Vacationist, so that we could provide them with our flash sales that they could sell to their membership base. The 'white label' is a site owned and operated by Secret Escapes, but hosted on the Vacationist.com URL. We take and process the money directly, we deal directly with the hotels and suppliers featured in our flash sales; so no money was ever at risk of being lost during Luxury Link's insolvency.
We've emailed every customer with an outstanding vacation to take that their holiday is safe with us.”)
One customer, Ben G of Chicago, Illinois, wrote on TripAdvisor that the hotel he had paid for to LuxuryLink had not received his payments:
I got a super helpful reply from Secrets:
Good afternoon Mr G,
Thank you for your email, I understand your concern regarding this unfortunately situation.
Our corporate offices are in the process of verify with Luxury Link the payment of all the rooms they have booked at our resorts.
Until now, your reservation is active but we haven’t receive the payment. In this cases we are requesting the payment upon arrival to our guests, honoring the same rate of Luxury Link $ 2,475 USD
If we receive the payment from the agency after you have paid at the hotel, you will receive a refund from us. I will keep you updated.
If you need any further information do not hesitate to contact me,
Best regards.
Another customer who had paid for stays later this year in Southeast Asia reported that the hotels for his trip had not been paid:
I just spoke with AMEX (Platinum Card) and informed them of two Luxury Link stays in Southeast Asia we have reserved for later this year (both properties have advised they never received payment from Luxury Link, even though I paid my AMEX bill this past February). AMEX has placed a permanent credit for the entire amount on my account and both of the hotels have agreed to allow me to pay them directly - the same discounted rate Luxury Link had charge and all of the perks will be included.
At the company’s office in Playa Vista, California there was an answering machine that was full and could not take messages. The company’s public relations agency, also in California, did not respond to an email seeking further information. (Updated @ 12:57 am EST: The PR company via email stated, "We are no longer working with Luxury Link.")
Luxury Link's CEO Scott Morrow was supposed to be in New York two weeks ago to meet the press. In pitching meetings, the public relations agency described him as "a visionary that is leading his team to fill the void for personalized travel in today's online travel space."
The topics they reported Morrow would discuss included, "Changes in the online travel space including the mergers of large travel websites such as Expedia and Travelocity, and what that means for consumers (and) New shifts in consumers booking luxury travel experiences online versus through travel agents." The trip was cancelled a few days in advance for "personal reasons."
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Among the travel still being displayed on its website is the Nobu Hotel at Caesars Palace in Las Vegas, a seven-day package to London and Paris and assorted resorts and hotels around the world. From Flyetalk, it was reported, that it was not possible to make bookings.
(Updated May 21 @ 1:54 pm: Monika Bialokur who says, she lost over $800 on two bookings with Luxury Link via its relationship with Gilt Groupe says the online fashion shopping site offered her a credit of $250.)
In its press material, the Luxury Link claims, “We set the stage for the moments that will shine in our travelers’ memories.” Perhaps in this case, not for the right reasons.
