Max Starkov

The Prisoner’s Dilemma, the Stockholm Syndrome, or a Case of Both?

Here are the results of the HeBS

Orbitz, Expedia: Stockholm Syndrome Meets the Web

Just to clarify a point here:
Commissions/margins paid by major travel suppliers to OTAs for bookings via OTA websites:
• Airlines: 0 (zero commission)
• Car Rental companies: 0 (some pay $3-$5)
• Hotels: $54.26 (ADR $108.52 (expected average ADR in the USA in 2009 x 2 nights at 25% margin)
• Hotels in NYC: $125 (ADR $250 at 2 nights at 25% margin)

Hotels are paying an average 54 to 125 times higher “booking fee” than airlines via an OTA website and 18 to 41 times higher fee than car rental companies.
Does it make sense to pay for advertising on top of this abnormally high “booking fee”?
You be the judge.