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The “free advertising” has little impact on profits from flight tickets, as most aggregators don’t sell at a huge markup. He’s probably thinking of revenue Book
by ricardobeat 2y ago
The “free advertising” has little impact on profits from flight tickets, as most aggregators don’t sell at a huge markup. He’s probably thinking of revenue Booking made from hotel bookings, where margins are way higher - but that’s not really taking away revenue from the flight company (and they get affiliate agreements to earn back a significant chunk of that).
> too big to effectively cut off
This is also true for the hotel industry, and is part of their moat. Smaller hotels especially can have the bulk of their revenue coming from aggregators, so they can’t drop the platform regardless of how much they like it or not. Building your own marketing channels is hard and expensive.