This is a long time coming: for more context, Hipmunk was acquired by Concur back in 2016 for $58MM [1] as the flights meta-search business was just getting tougher and tougher As someone who's dabbled in flights bookings (BookWithMatrix) and now am working on a travel startup (Wanderlog, https://wanderlog.com , a Google Docs/Trips for travel planning), flights are just not that profitable. In North America, you'd be…
> flights are just not that profitable. Trivago, Kayak, etc would say otherwise. Yes margins are slim, but this is a classic case of why no UI/UX will ever trump mass distribution. OTAs are basically the walmart of the digital world.
Trivago is in the hotel business, which has better margins. Some sites like Expedia will actually take a loss on a flight if you book it with a hotel or rental car, which they make a profit on.
Kayak (and the rest of the Priceline/Booking.com group) takes a much more advertising driven model. You'll notice the site has lots of pushes to sign you up for their various mailing lists that yield long term reoccurring revenue on airline credit cards and travel packages.