How do the sketchy OTA's manage to undercut the normal channels?
Feb 23, 2018, 12:50 pm
#1
Original Poster
Join Date: Mar 2009
Location: SJC / DPS
Programs: AS G75K, UA Silver
Posts: 1,757
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.
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.
