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Why Momondo's Business Model is so successful?

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Momondo’s Company Overview


Momondo is a leading global travel search site that provides a free, independent, and inspirational means to search for travel. The Denmark-based company operates in over 30 international markets and offers a bold and colorful travel universe that provides complete price transparency across flights, hotels, and car rental options. Momondo's innovative technology connects users directly with thousands of travel companies, allowing them to find the best deals on their travels. The company's mission is to open the world by inspiring people to explore different cultures, people, and places, thereby making travel more accessible. Business Model: Momondo operates on a metasearch engine business model. They aggregate information from various travel and booking sites, including airlines, hotels, and car rental services, to provide users with a comprehensive list of options. The platform does not sell tickets or bookings directly; instead, it redirects users to the respective travel providers or booking sites to complete their transactions. This model allows Momondo to provide a user-friendly, unbiased comparison of prices and options from a wide range of global and local online travel agencies and airlines. Revenue Model: The revenue model of Momondo primarily revolves around advertising and referral fees. Whenever a user clicks on a deal and gets redirected to the respective travel provider or booking site, Momondo earns a commission. This is known as a cost-per-acquisition (CPA) or cost-per-click (CPC) revenue model. In addition to this, they also generate revenue from display advertising on their website and app. However, the company ensures that the advertising doesn't influence the search results, thus maintaining transparency and trust with its users.

https://www.momondo.es/

Country: Denmark

Foundations date: 2006

Type: Subsidiary

Sector: Consumer Services

Categories: Travel


Momondo’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access, fun/entertainment, attractiveness

Functional: saves time, simplifies, connects, reduces effort, informs, variety


Momondo’s Related Competitors



Momondo’s Business Operations


Channel aggregation:

Consolidating numerous distribution routes into one to achieve greater economic efficiency. A business model for internet commerce in which a company (that does not manufacture or warehouse any item) gathers (aggregates) information about products and services from many competing sources and displays it on its website. The firm's strength is in its power to create an 'environment' that attracts users to its website and develop a system that facilitates pricing and specification matching.

Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Affiliation:

Commissions are used in the affiliate revenue model example. Essentially, you resell goods from other merchants or businesses on your website or in your physical store. You are then compensated for referring new consumers to the company offering the goods or services. Affiliates often use a pay-per-sale or pay-per-display model. As a result, the business can access a more diversified prospective client base without extra active sales or marketing efforts. Affiliate marketing is a popular internet business strategy with significant potential for growth. When a client purchases via a referral link, the affiliate gets a portion of the transaction's cost.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Online to Offline O2O:

Online to offline is a term (often abbreviated as O2O) used in digital marketing to refer to systems that entice customers to purchase products or services from physical companies while they are in a digital environment.

Referral:

Referral marketing is a technique for acquiring new consumers by advertising goods or services through recommendations or ordinary word of mouth. While these recommendations often occur spontaneously, companies may influence this via the use of suitable tactics. Referral marketing is a technique for increasing referrals through word of mouth, arguably the oldest and most trusted kind of marketing. This may be done by incentivizing and rewarding consumers. A diverse range of other contacts to suggest goods and services from consumer and business-to-business companies, both online and offline.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

White label:

The term white label refers to a product or service bought by a reseller who rebrands it to show that the new owner developed it. Frequently, white-label goods are mass manufactured. Thus, white-label goods are produced by one firm and sold by another under their brand and model number. For instance, most Dell computer screens are created by third-party manufacturers yet have the Dell brand and model number.

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