AOL Europe's 5m users in the UK, France and Germany will be provided with the facilities and have access to exclusive deals in last-minute travel, theatre tickets and gifts. AOL will also create specific marketing campaigns to promote the new agreement.
Although financial details are yet to be revealed, sources close to the deal said Lastminute will pay around £700,000 for the 12-month agreement, according to Reuters.
Lastminute's rival, ebookers, is to close its similar deal with AOL Europe.
Lastminute CEO Brent Hoberman said, "The partnership is based on a strong record of performance and is in line with Lastminute.com's cost-effective marketing strategy as we move towards profitability."
Jerry Glover, senior vice-president of interactive marketing at AOL Europe, said, "The depth of Lastminute.com's integration across our European services is a testament to our confidence in their status as winners in the e-commerce space."
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