The Web travel agency said it has partnered with Site59.com to get the new service off the ground. Site59 specializes in discounted fares for trips booked within two weeks of departure.
Travelocity and competitors such as Microsoft-backed Expedia had been steadily beefing up their services in recent months as they anticipated this month's launch of Orbitz, the online travel agency formed by a group of top airlines.
Fort Worth, Texas-based Travelocity struck a partnership last month with Viator, an online company that provides information on travel destinations. Expedia launched a service called Expedia Packages, which builds airfare and hotel packages and provides a discount fare service called "Bargain Fares."
Travelocity said its new last-minute booking service is geared toward people seeking discounted fares for long weekend getaways.