cheryl
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Skift Analysis: Amazon’s Travel Strategy Comes Into Focus - Skift
So why would Amazon choose to reenter the travel industry through a seemingly loss-generating proposition, hawking already low-margin airline tickets via a Cleartrip partnership in the domestic Indian market?
It sounds crazy, but Skift Research believes that airline tickets are a sensible entry point for a new Amazon foray into travel.
Flights is a fairly commoditized product with far fewer suppliers to tangle with — hundreds of airlines worldwide versus hundreds of thousands of hotels, for example. But the challenge of selling airfares is that it is a low-margin offering, typically the least profitable product for online travel agencies.
So why would Amazon choose to reenter the travel industry through a seemingly loss-generating proposition, hawking already low-margin airline tickets via a Cleartrip partnership in the domestic Indian market?
It sounds crazy, but Skift Research believes that airline tickets are a sensible entry point for a new Amazon foray into travel.
Flights is a fairly commoditized product with far fewer suppliers to tangle with — hundreds of airlines worldwide versus hundreds of thousands of hotels, for example. But the challenge of selling airfares is that it is a low-margin offering, typically the least profitable product for online travel agencies.