Amazon Uses Priceline Partnership to Grab Travel Spend on Prime Day

Amazon Prime Day is now underway, and the eCommerce giant is determined to engage Prime members and stimulate spending. With lofty aspirations, Amazon aims to exceed its 2022 Prime Day of selling over 300 million items worldwide.

Although the strategy of enticing customers during an economic downturn may appear risky, Amazon encountered its own challenges during last year’s Prime Day event, including inflationary pressures. According to a PYMNTS Prime Day 2022 report, which surveyed 3,245 shoppers, median spending on Prime Day 2022 increased by 40% to $175.

Furthermore, Prime members who reported living paycheck to paycheck and struggled to make ends meet increased their Prime Day spending. Their median receipts saw a rise of $48 compared to the previous year, but this increase reflected a focus on strategic deal-seeking rather than indulgent splurging. It indicated that these members carefully sought out the best deals, prioritizing their limited budgets and making strategic purchasing decisions.

As a result of these strategic choices, while there was a decrease in purchases of big-ticket items, Prime members showed a higher preference for buying electronics rather than groceries, with only 23% of shoppers opting for grocery purchases and 31% of shoppers opting for electronics.

This year, Amazon is looking to enhance its value proposition for Amazon customers and would-be customers. The company is letting non-Amazon Prime customers sign up for a 30-day trial to take advantage of the deals event.

Amazon is also extending an additional 6% discount to Amazon Prime card holders for their purchases. Those who wish to benefit from this discount can apply for the card and take advantage of the savings. The move comes in response to the current economic climate, where 33% of cardholders have increased their dependence on credit cards in the past six months, amid increased inflation.

Read more: Gen Z, Millennials Use Credit Cards 30% More Than the Average Cardholder

In addition to the anticipated discounts on popular online items ranging from Kindles and Apple devices to household gadgets, Amazon is also venturing into various realms to extend the “Amazon effect.”

Amazon Expands to Travel Deals

For this year’s Prime Day, Amazon has partnered with travel booking site Priceline to offer exclusive discounts.

Although Priceline already advertises its products on Amazon’s audio and streaming platforms, its participation in Prime Day marks the first time Amazon has collaborated with a travel company in the U.S. to offer travel benefits during one of its major sales events of the year.

“We want to meet customers where they are. We know travelers are shopping on Amazon and booking travel with Priceline,” said Lesley Klein, senior vice president of marketing at Priceline.

Priceline’s parent company, Booking Holdings, has previously offered hotel deals during Prime Day in several other countries. This year, Booking.com has provided Prime members in Austria and Germany with exclusive access to travel credits and discounts specifically applicable to travel in 2023 and 2024.

Despite a decline in retail spending, American consumers have maintained their inclination to invest in experiences such as travel, prompting this joint effort between Amazon and Priceline.

Through the partnership, Amazon is offering an extra 20% off Priceline’s Hotel Express deals. For customers to take advantage of the offer, they will need to make a minimum purchase of $300 and can expect a maximum savings of $75.

The Spotlight on Small Biz

In a recent interview with PYMNTS, Claire O’Donnell, director of Selling Partner Empowerment, Communities & Trust at Amazon, discussed a new Prime Day focus: the amplification of deals from small and medium-sized businesses (SMBs).

O’Donnell highlighted a noticeable shift in customer behavior, with a growing trend toward shopping in line with personal values, particularly among younger consumers. There is also a strong inclination to support small businesses. In response, Amazon has implemented initiatives to improve the visibility and shopping experience for small businesses, aiming to cater to these preferences.

Customers now have the opportunity to refine their search on the Prime deals page, specifically focusing on deals offered by small businesses. Furthermore, Amazon introduced the Small Business badge in the previous year, enabling customers to easily identify products from small businesses while browsing the Amazon platform. This badge will be prominently displayed in search results and on product pages, serving as a clear indicator of items sourced from small businesses.

Read more: Amazon Says Prime Day 2023 Will Highlight Small Business

Traffic to Physical Stores

In a press release issued July 6, Amazon announced that it is extending discounts to Amazon Prime members for in-store purchases of groceries and fashion items.

“Curious about our stores?” Amazon said in the release. “We have many different customers with many different needs, and it’s our job to meet them where they are. We do this through our stores — Whole Foods Market, Amazon Fresh, Amazon Go and Amazon Style — each of which offer a unique value proposition, an unparalleled range of brands and a variety of ways to shop.”

As an illustration of the offers available, Prime members who purchase $50 or more at Amazon Fresh stores get a 25% discount on their in-store purchases during Prime Day. Furthermore, Prime Visa card members with an eligible Prime membership can earn a 6% cashback when they use their card to shop at Amazon Fresh on Prime Day.

At Amazon Go stores, Prime members who spend $10 will receive $5 to use on their next visit. Additionally, Prime members visiting an Amazon Style store can enjoy an additional 20% discount, saving up to 70% on Prime Day deals.

Whole Foods Market is joining in on the Prime Day festivities with Prime Visa cardholders can earn a cashback of 6% (5% year-round) when shopping at Whole Foods Market.

Prime members shopping at Whole Foods Market can also get an additional 10% discount on hundreds of in-store sale items. Moreover, Whole Foods Market is featuring deals such as a 35% discount on ice cream and frozen desserts, among other offers.