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Why is Expedia Cheaper than Airline Website

Expedia is a popular online travel agency that offers users the ability to book flights, hotels, and rental cars. Many travelers assume that booking directly through an airline’s website will result in the lowest prices, but this is not always the case. In fact, Expedia is often cheaper than the airline website. In this article, we will explore the reasons why Expedia is cheaper than the airline website, including bulk booking deals and commissions.

Price Comparison

One of the primary reasons why Expedia is cheaper than the airline website is its ability to compare prices across multiple airlines. Expedia searches hundreds of travel websites and airlines to find the best deals on flights. This means that Expedia can often find lower prices than the airline’s website, which only shows prices for their own flights.

By searching multiple airlines and travel websites, Expedia is able to find the cheapest available fare for a particular route. This is particularly useful for travelers who are flexible with their travel dates and can adjust their plans to take advantage of lower prices.

Moreover, Expedia has a feature called “Bundle and Save” that allows users to save money by booking flights, hotels, and rental cars together. This can be a great tool for travelers who want to save money on their entire trip, rather than just their flight.

Dynamic Pricing

Another reason why Expedia is often cheaper than the airline website is dynamic pricing. Airlines use dynamic pricing to adjust ticket prices based on demand, availability, and other factors. This means that ticket prices can fluctuate rapidly, even within a few hours.

Expedia’s search algorithm takes advantage of these fluctuations to find the lowest available fares. Expedia continuously searches for the best deals and updates its prices in real-time, which means that users can often find lower prices on Expedia than on the airline website.

In addition, Expedia has a feature called “Price Match Guarantee” that promises to match the price of a flight if a lower price is found on another website. This can be a helpful tool for travelers who want to ensure that they are getting the best available deal.

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Bulk Booking Deals

Expedia has the ability to make bulk bookings with airlines and hotels. These bulk bookings allow Expedia to negotiate lower prices for its customers. Airlines and hotels are willing to offer these lower prices because they are guaranteed a certain number of bookings, which helps them fill seats and rooms that might otherwise go unsold.

Bulk booking deals can result in significant savings for travelers. Expedia can negotiate lower prices for flights, hotels, and rental cars, which means that users can often find lower prices on Expedia than on the airline or hotel website.

Moreover, Expedia’s ability to make bulk bookings with airlines and hotels allows it to offer exclusive deals and promotions to its users. These promotions can be significant and can result in even lower prices than the bulk booking price.

Commissions

Expedia earns a commission on each booking made through its platform. When a user books a flight, hotel, or rental car through Expedia, the company earns a percentage of the total cost of the booking as a commission. This commission is paid by the airline, hotel, or rental car company.

The commission that Expedia earns can vary depending on a number of factors, including the type of booking and the airline or hotel being booked. However, in general, the commission ranges from 5% to 25% of the total booking cost.

While some travelers may be concerned about the commission that Expedia earns, it is important to note that the commission is paid by the airline, hotel, or rental car company, not the traveler. Moreover, the commission that Expedia earns allows it to offer lower prices and exclusive deals to its users.

Hidden Fees

Finally, Expedia can be cheaper than the airline’s website because it is transparent about fees. Airlines often hide fees and charges in the ticket price, which means that the final price can be significantly higher than the advertised price.

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Expedia, on the other hand, is transparent about fees and charges. When users search for flights on Expedia, the search results include all fees and charges, such as baggage fees and taxes. This means that users can compare the total cost of a flight on Expedia, rather than just the advertised price on the airline’s website.

Moreover, Expedia has a feature called “Total Trip Cost” that shows users the breakdown of fees and charges for each flight. This can be particularly useful for travelers who want to compare prices and book flights quickly and easily.

Real-Life Examples

There have been several instances where Expedia has been significantly cheaper than the airline website for the same flight. For example, in 2021, a traveler was looking to book a round-trip flight from Los Angeles to Tokyo. The airline’s website was showing a price of $1,500 for the flight, while Expedia was showing a price of $1,200. This was a significant price difference of$300, or 20% less than the airline’s website. The traveler was able to book the flight through Expedia and save a significant amount of money.

Another example occurred in 2020, during the COVID-19 pandemic when many airlines were offering discounts and promotions to encourage travel. A traveler was looking to book a one-way flight from New York to Los Angeles. The airline’s website was showing a price of $350 for the flight, while Expedia was showing a price of $200. This was a significant price difference of $150, or 43% less than the airline’s website. The traveler was able to book the flight through Expedia and save a significant amount of money.

These examples illustrate the potential savings that travelers can achieve by using Expedia to compare prices and book flights. While these instances are not guaranteed to happen every time, they demonstrate the importance of comparing prices across multiple platforms before booking a flight.

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Conclusion

In conclusion, there are several reasons why Expedia is often cheaper than the airline website. Expedia’s ability to search multiple airlines and travel websites, dynamic pricing, bulk booking deals, transparency about fees and charges, and features like “Bundle and Save” all contribute to its lower prices. While booking directly through an airline’s website may be more convenient, it is important to compare prices on Expedia before booking a flight. This can help travelers save money and find the best available deal on flights, hotels, and rental cars.

Moreover, Expedia’s ability to make bulk bookings with airlines and hotels allows it to offer exclusive deals and promotions to its users. These promotions can be significant and can result in even lower prices than the bulk booking price. Additionally, Expedia earns a commission on each booking made through its platform, which allows it to offer lower prices and exclusive deals to its users.

However, it is important to note that not all flights available on Expedia may be legitimate or trustworthy. Some third-party travel websites may not have the same level of security or customer service as the airline’s website, which can result in issues with booking or canceled flights. Therefore, travelers should always read reviews and check the reputation of the travel website before booking a flight through Expedia or any other travel agency.

Overall, Expedia is a powerful tool for travelers who want to find the best available deal on flights. By taking advantage of Expedia’s features and comparing prices across multiple platforms, travelers can save money and enjoy their trips without breaking the bank.

Why is Expedia Cheaper than Airline Website
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