Corporate Finance Question
Travel sites. How do they make their money?
I'm currently booking a few trips online. Travelzoo (TZOO), Orbitz (OWW). Do they collect a fee? Pay per click advertising? I just don't know how they make their money! Please help me understand.
Answers
951 points
Grudun answered one year ago …
They get a small commision on everything they book. This is far smaller than traditional travel agents used to take and has resulted in significant savings for hotels, airlines and rental car agencies. They do also get a little from advertising but this is generally oriented at guiding people to the higher commision products.
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391 points
slick answered one year ago …
some are driven by ads. they paid per click or per thousand views.
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