3 ms·
> flights are just not that profitable. Trivago, Kayak, etc would say otherwise. Yes margins are slim, but this is a classic case of why no UI/UX will ever tru
by mbesto 7y ago
> flights are just not that profitable.
Trivago, Kayak, etc would say otherwise. Yes margins are slim, but this is a classic case of why no UI/UX will ever trump mass distribution. OTAs are basically the walmart of the digital world.
- mike_d 7y ago> Trivago, Kayak, etc would say otherwise. Trivago is in the hotel business, which has better margins. Some sites like Expedia will actually take a loss on a flight if you book it with a hotel or rental car, which they make a profit on. Kayak (and the rest of the Priceline/Booking.com group) takes a much more advertising driven model. You'll notice the site has lots of pushes to sign you up for their various mailing lists that yield long term reoccurring revenue on airline credit cards and travel packages.
- cutenewt 7y agoIt's odd to see so many commenters insist that there's money to be made in flight search, despite not having industry experience. This comment nail it dead-on. Flights are a loss leader. It's the gateway to more profitable travel services like booking hotels, which ironically have shrinking margins over the last few years. There's no need for an OTA middleman when a hotel can build a direct relationship with the customer (via loyalty programs).