Booking.com Interview Question: What is the difference betwee... | Glassdoor

Interview Question

Software Developer Interview

What is the difference between the merchant model and agent

  model?
Answer

Interview Answer

2 Answers

2

Merchant Model : In this model, hotels sell rooms to OTAs in bulk at discounted or wholesale prices. The OTAs then sell them to customers at a markup price. This is the most commonly used model, and it benefits both parties. Like Expedia follows this model. Actually Expedia follows both models.

Agent Model : This is a commission-based model wherein hotels give OTAs commissions based on business bought. In this model, the hotels list their services, and the OTAs don’t have to buy anything up front. This is beneficial for hotels, as it gives them the freedom to price their rooms as per the demand scenario. Booking.com follows this.

Anonymous on Mar 17, 2017
1

Merchant Model : In this model, hotels sell rooms to OTAs in bulk at discounted or wholesale prices. The OTAs then sell them to customers at a markup price. This is the most commonly used model, and it benefits both parties. Like Expedia follows this model. Actually Expedia follows both models.

Agent Model : This is a commission-based model wherein hotels give OTAs commissions based on business bought. In this model, the hotels list their services, and the OTAs don’t have to buy anything up front. This is beneficial for hotels, as it gives them the freedom to price their rooms as per the demand scenario. Booking.com follows this.

Tasneem on Mar 17, 2017

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