coachclass
Posts: 355
Joined: Tue Jan 12, 2010 7:59 pm

How Does Orbitz Make Money?

Mon Feb 08, 2010 3:50 pm

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?
 
doofus
Posts: 32
Joined: Thu Mar 23, 2006 4:22 am

RE: How Does Orbitz Make Money?

Mon Feb 08, 2010 4:01 pm

Follow the (advertising) money and you will find your answer...
 
764
Posts: 490
Joined: Tue Jul 31, 2001 6:34 pm

RE: How Does Orbitz Make Money?

Mon Feb 08, 2010 4:02 pm

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.
 
azstar
Posts: 412
Joined: Wed May 11, 2005 5:25 am

RE: How Does Orbitz Make Money?

Mon Feb 08, 2010 4:05 pm

Online agencies do not make commissions or fees per booking from airlines. They do, however, receive fees for listing airlines flights on their website.
 
rfields5421
Posts: 5776
Joined: Thu Jul 19, 2007 12:45 am

RE: How Does Orbitz Make Money?

Mon Feb 08, 2010 4:10 pm

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.
 
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kgaiflyer
Posts: 2627
Joined: Sat Jul 19, 2008 3:22 am

RE: How Does Orbitz Make Money?

Mon Feb 08, 2010 4:55 pm

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.
 
Vctony
Posts: 470
Joined: Sun Aug 01, 1999 10:51 am

RE: How Does Orbitz Make Money?

Mon Feb 08, 2010 4:58 pm

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.
 
azstar
Posts: 412
Joined: Wed May 11, 2005 5:25 am

RE: How Does Orbitz Make Money?

Mon Feb 08, 2010 5:18 pm

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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