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Strategies & Market Trends : Value Investing

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To: petal who wrote (71762)12/18/2022 4:17:54 PM
From: Elroy  Read Replies (1) of 78764
 
I described the "moat" to you in my previous post.

It is the structure of the agreement between the major OTA's and the hotels that requires hotels to offer a minimum price to each OTA.

Expedia takes 18% of that minimum price, while the other smaller OTA's may take a lower percent, but they only can show the customer the same minimum price. So we as customers don't see lower prices, we see the same price.

But there must be more to it than that. The percentage amount that booking software takes out of the nightly housing / travel industry is too high. Expedia is just software, and not very complicated software at that. The charge paid by a hotel to the agent when a customer books a room should be 0.1%, not more than 10%.....
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