Understanding the Ecosystem of ITA, Orbitz, Kayak, and Hipmunk in the Travel Industry

ITA, Orbitz, Kayak, and Hipmunk are key players in the travel industry, each serving unique functions and operating under distinct business models. This article aims to provide a comprehensive breakdown of these companies, focusing on their structure, functions, and monetization strategies. By understanding the relationships and interactions within this ecosystem, travelers and businesses can make more informed decisions.

1. ITA Software

Structure and Function:

ITA Software is a technology company specializing in airfare pricing and search technology. It develops the backend technology that powers many travel booking websites, enabling them to perform flight searches and calculate fares efficiently.

Monetization:

ITA Software typically licenses its technology to airlines and online travel agencies (OTAs), generating revenue through these licensing agreements. It does not directly sell tickets or aggregate prices for consumers, focusing instead on providing robust technology solutions.

2. Orbitz

Structure and Function:

Orbitz is an online travel agency (OTA) that offers booking services for flights, hotels, car rentals, and vacation packages. It aggregates prices from numerous airlines and travel service providers to present a wide range of options to consumers for comparison.

Monetization:

Orbitz earns revenue through commissions on bookings made through its platform and through advertising. It may also participate in affiliate programs with other travel service providers, creating a reciprocal financial benefit.

3. Kayak

Structure and Function:

Kayak operates as a meta-search engine, allowing users to search for travel options across multiple OTAs and airline websites. It aggregates prices from various sources, including Orbitz, Expedia, and direct airline websites, to provide a comprehensive view of available options.

Monetization:

Kayak primarily makes money through referral fees and advertising. When users click through to book through a partner site, Kayak earns a commission.

4. Hipmunk

Structure and Function:

Hipmunk was a meta-search engine similar to Kayak, focusing on providing an easy-to-use interface for flight and hotel searches. It aggregated data from various providers to display travel options, often highlighting factors like travel time and layovers.

Monetization:

Hipmunk generated revenue through affiliate partnerships and referral fees similar to Kayak, directing users to other booking platforms.

Summary of Relationships

ITA Software: provides the underlying technology for many travel sites without directly aggregating prices for consumers.

Orbitz: aggregates prices from various providers and earns through commissions on bookings.

Kayak Hipmunk: both aggregate prices from multiple OTAs, including Orbitz, and earn through referral fees and advertising.

Orbitz Other OTAs: may participate in affiliate programs with sites like Kayak, paying for traffic driven to them.

In essence, Kayak and Hipmunk act as aggregators of prices from OTAs like Orbitz, while ITA provides the technology that underpins many of these platforms. This creates a complex ecosystem of travel services and monetization strategies, enriching the landscape for both travelers and businesses involved in the industry.