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Skift Analysis: Amazon’s Travel Strategy Comes Into Focus
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<blockquote data-quote="cheryl" data-source="post: 1138" data-attributes="member: 1"><p><a href="https://skift.com/2019/05/17/amazons-travel-strategy-comes-into-focus/" target="_blank"><strong>Skift Analysis: Amazon’s Travel Strategy Comes Into Focus - Skift</strong></a></p><p></p><p>So why would Amazon choose to reenter the travel industry through a seemingly loss-generating proposition, <a href="https://skift.com/2019/05/16/amazon-launches-flight-bookings-in-india-in-a-superapp-strategy/" target="_blank">hawking already low-margin airline tickets via a Cleartrip partnership</a> in the domestic Indian market?</p><p></p><p>It sounds crazy, but Skift Research believes that airline tickets are a sensible entry point for a new Amazon foray into travel.</p><p></p><p>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.</p></blockquote><p></p>
[QUOTE="cheryl, post: 1138, member: 1"] [URL='https://skift.com/2019/05/17/amazons-travel-strategy-comes-into-focus/'][B]Skift Analysis: Amazon’s Travel Strategy Comes Into Focus - Skift[/B][/URL] So why would Amazon choose to reenter the travel industry through a seemingly loss-generating proposition, [URL='https://skift.com/2019/05/16/amazon-launches-flight-bookings-in-india-in-a-superapp-strategy/']hawking already low-margin airline tickets via a Cleartrip partnership[/URL] 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. [/QUOTE]
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Skift Analysis: Amazon’s Travel Strategy Comes Into Focus
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