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How Does Orbitz Make Money?  
User currently offlineCoachClass From United States of America, joined Jan 2010, 452 posts, RR: 0
Posted (4 years 10 months 2 weeks 4 days 2 hours ago) and read 15978 times:

Orbitz, Expedia and Travelocity don't usually charge booking fees on air plane tickets or for hotels, car rentals. And, airlines no longer pay commissions as far as I know. So, how do these travel companies make money?

7 replies: All unread, jump to last
 
User currently offlinedoofus From United States of America, joined Mar 2006, 20 posts, RR: 0
Reply 1, posted (4 years 10 months 2 weeks 4 days 2 hours ago) and read 15936 times:

Follow the (advertising) money and you will find your answer...

User currently offline764 From United States of America, joined Jul 2001, 634 posts, RR: 0
Reply 2, posted (4 years 10 months 2 weeks 4 days 2 hours ago) and read 15932 times:

They do charge fees on some flights. Plus they earn commissions on hotels, cars, etc. There is also advertisement revenue. Then there are cancellation and change fees (on top of the airline's fees).

However, I am not convinced that Orbitz doesn't earn some sort of commission or per sale compensation. The mere fact that most airlines don't pay commissions on a regular basis doesn't mean there aren't negotiated deals between them and certain distribution channels. But of course I know no details on this one. I am just saying that I wouldn't be surprised if Orbitz did earn a few dollars per booking.


User currently offlineazstar From United States of America, joined May 2005, 631 posts, RR: 0
Reply 3, posted (4 years 10 months 2 weeks 4 days 2 hours ago) and read 15909 times:

Online agencies do not make commissions or fees per booking from airlines. They do, however, receive fees for listing airlines flights on their website.

User currently offlineRFields5421 From United States of America, joined Jul 2007, 7607 posts, RR: 32
Reply 4, posted (4 years 10 months 2 weeks 4 days 2 hours ago) and read 15856 times:

It is also pretty obvious that certain airlines come to the top on certain routes.

I suspect that is very much like Google searches where the first five listed are almost always not the most popular, but for someone who has paid to be in a top five spot.


User currently offlineKGAIflyer From United States of America, joined Jul 2008, 4327 posts, RR: 1
Reply 5, posted (4 years 10 months 2 weeks 4 days 1 hour ago) and read 15662 times:
Support Airliners.net - become a First Class Member!

Quoting 764 (Reply 2):
However, I am not convinced that Orbitz doesn't earn some sort of commission or per sale compensation.

Remember that United, American, and Northwest used to own Orbitz. I would wager that they still offer some fare classes for sale at less cost on Orbitz than on their own web sites. That equates to a sales commission whether the FTC recognizes it as such or not.

On a side note -- in spite of a gazillion ads and pop-ups, personally I find Orbitz faster with fare returns than either Expedia or Travelocity, and frequently it offers more choices than those other sites.


User currently offlinevctony From United States of America, joined Aug 1999, 456 posts, RR: 0
Reply 6, posted (4 years 10 months 2 weeks 4 days 1 hour ago) and read 15632 times:

Quoting KGAIflyer (Reply 5):
On a side note -- in spite of a gazillion ads and pop-ups, personally I find Orbitz faster with fare returns than either Expedia or Travelocity, and frequently it offers more choices than those other sites.

I generally like Orbitz the best, followed by Travelocity, followed by Expedia. Orbitz seems to be the easiest to use and I prefer the way it is organized.


User currently offlineazstar From United States of America, joined May 2005, 631 posts, RR: 0
Reply 7, posted (4 years 10 months 2 weeks 4 days 1 hour ago) and read 15521 times:

I recommend Kayak or Sidestep. They search the airlines website rather than airfline's GDS so they will display "web only" fares that you will not get on Travelocity/Orbitz/Expedia. Also, when you click on an option they forward you to the airline website for booking, which is always preferable to using an online agency.

[Edited 2010-02-08 09:19:19]

[Edited 2010-02-08 09:19:45]

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