Go Back  FlyerTalk Forums > Travel&Dining > Online Travel Booking and Bidding Agencies
Reload this Page >

How do the sketchy OTA's manage to undercut the normal channels?

How do the sketchy OTA's manage to undercut the normal channels?

Old Feb 23, 18, 12:50 pm
  #1  
Original Poster
 
Join Date: Mar 2009
Location: DEN / CGK
Programs: UA 1K, AS MVPG 75K, Marriott Gold, Hertz PC
Posts: 1,519
How do the sketchy OTA's manage to undercut the normal channels?

After booking about 10 one-way tickets today on ExploreTrip and Omega Flight Store and watching these sites 'lose' about $15 per ticket booked, I seriously wonder how this is a viable business model?

For example:
SFO-FLL on AS prices at $179 on most normal sites. ExploreTrip offers it for $165. The receipt on the VX site shows that ExploreTrip paid the full $179.

SEA-SFO was pricing at $108 on UA. Omega ticketed it at $91, but looking at the UA receipt, Omega was hit with an add/collect to pick up the difference.

Does the commission they get for booking flights really cover the losses they incur on regular tickets? Curious if anyone has insight to this.
pushmyredbutton is offline  

Thread Tools
Search this Thread
Search Engine: