In the early days of Expedia.com, our business strategy was based on the agency model; taking a small commission on every hotel booking. Problem was, it usually cost more to process a booking than the commission brought in, so what we lost in margin we made up for in volume. Then a brilliant colleague proposed we pivot to a merchant model, in which Expedia would pre-purchase rooms at a big discount and then resale them at a reasonable markup. Now, of course, Expedia.com is a very profitable not-so-little business.
But all this was based on the concept of hotel read more >>>
Source : HuffingtonPost.Com