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Why [City]Hotels.com domains are so expensive?

Labeled as analysis in General Domain Discussion started by AMRO1001, Aug 12, 2019.

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  1. AMRO1001

    AMRO1001 Established Member

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    Why a domain like LAhotels.com and SydneyHotels.com were sold for 100k each ...though its hard to compete with the top hotel booking sites such as Booking.com and agoda.com?

    And i could not find any major site targeting hotels for one city only!

    Thanks
    A
     
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  2. Gube

    Gube Member Epik.com Staff

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    Maybe to make a small affiliate website with all hotels from the city, You earn as an affiliate (and ads)
     
  3. dncafe

    dncafe Established Member ★★★★★★★★★★

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    There is a lot of money in affiliate fees for booking hotel reservations.

    4% affiliate fee of a $500 hotel booking is $20

    If you can get 5,000 people to use your affiliate link and book a $500 stay, in a year that's a gross of $100,000 affiliate earnings

    People paying high dollar for a CITYHotel.com domain believe that having an exact match domain will give them a significant advantage in search engine rank and in user trust. They factor in the amount of time it will take to earn enough affiliate money to pay off the domain and then start profiting
     
    Last edited: Aug 14, 2019
  4. coolhands

    coolhands Established Member

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    booking.com give up to 25% commission
     
  5. KTC

    KTC Established Member

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    That's only at a minimum for 25%. If a affiliate generates many bookings, they can receive up to 40% per their booking commission, which is practically bonus money for generating many bookings. Then again, since booking.com only has a session cookie, you would need to have a ton of people booking in that session or it just additional free marketing for them.

    But, back to the original topic, there's just a ton of money in the travel space, with hotels being one of the highest commissions that can be generated. The amount of demand and advertising revenue just for even one decent vacation destination(holiday destination) can be highly profitable if done right. Hence, the high cost for geo+hotels can be costly.
     

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