Expedia chairman attacks Apple's 'disgusting' 30% commission fee

13

Comments

  • Reply 41 of 69
    rbelizerbelize Posts: 20member
    Apple will most likely have to compromise somewhat, at least it seems like it so far. So why don’t they allow for Tom, Dick and Harry to open App Stores for the iPhone, and then the people who want to download apps through the other app stores can do so, AFTER they deleted the app they downloaded from the App Store. 

    Side note: Do you REALLY think the other app stores will be cheaper? I think not. 
  • Reply 42 of 69
    amar99amar99 Posts: 93member
    Companies looking to jump on the anti-Apple bandwagon. Watch them all go back into hiding if Apple comes out of the Epic trial without a scratch.
    Beatslkruppkillroybaconstangwatto_cobra
  • Reply 43 of 69
    tundraboytundraboy Posts: 1,787member
    The idiot calls Apple a "quasi-monopoly".  That is a meaningless term, like "half-pregnant".  There is no such thing.  Well maybe he's not an idiot, just a quasi-idiot.
    Beatskillroyhydrogenhammeroftruthbaconstangh2pwatto_cobra
  • Reply 44 of 69
    Beats said:
    slurpy said:
    Who gives a flying fuck about Expedia anymore?

    "The idea that they actually justify it by saying We spend all this money protecting our little App Store. I mean, it's criminal," said Diller speaking to CNBC. "Well, it will be criminal." 

    Diller complained about Apple's "quasi-monopoly," and compared Apple's 30% fee to a credit card company, which would take a fee of around 2% on transactions. "It's irrational, 30%. I mean, it makes no sense," he insisted.

    "Criminal"? And he fucking compares is to credit card transaction fees, as if the concepts are even REMOTELY similar? This guy sounds like a massive piece of shit, and either an even bigger liar, or a moron. Also love how all these assholes are foaming at the mouth over Apple's fees, yet haven't said a fucking word about Google's identical fees on Android, even though developers make a much higher ROI on iOS.  

    I wonder what this worthless asshole has contributed to anything, besides lining his pockets. Just another worthless, parasitic "chairman" that somehow thinks he's in a position to shit on Apple. 


    I see this everyone vs Apple mentality everywhere. From Internet forums(“Apple hires slaves! LOL”) to lawsuits, conveniently leaving out everyone else and changing facts to make Apple look bad. 
    Who cares? Haters gonna hate :D 

    P.S. I actually don't quite understand the problem of alternative 'app stores'. iOS apps are sandboxed. Apple could display a big fat disclaimer every time an app is downloaded or even started. They could even put a watermark over it or make the icon a different colour. If it still messes someone's phone up somehow, they'll've been warned. No one goes to the court over their Macs broken by a funny app, right? So why can't Apple put disclaimers in place and try to make a clear distinction between the App Store and third parties? They could even void the warranty, so that whoever messed up the hardware they owned would have themselves to blame, just as they would with any other consumer product, premium or not. Apple are getting caught up of their own hyper-responsibility, IMO.

    edited May 23 Beatsmuthuk_vanalingam
  • Reply 45 of 69
    HrebHreb Posts: 18member
    tmay said:

    Another way that Expedia makes money is through commission fees. Because Expedia always offers the lowest price (or at least a lower price than the hotel will offer), people will be far more willing to actually take a trip in the first place. So hoteliers are far more inclined to sell rooms to Expedia because some money is better than no money. The commission fees are usually between 20% and 25%.

    Where this analogy falls apart is that Expedia is actually fronting the money for those hotel rooms, paying the hotel, incurring the risk, and reselling to the customer.  This might be vaguely similar to Apple's situation were that it were pre-paying developers for apps / purchases, marking them up, and then reselling those apps / purchases to users.  Of course, that makes no sense.  Apple is providing a distribution platform, and they're entitled to a fee for providing that service.  But Apple's not just charging a fee, they're taking a sizable commission based on the value of the goods distributed on their platform, as if the cost of the service they provide scales with the value delivered on that platform.  This is a dubious model and, at 30%, it's pretty clear it would be unsustainable if there were third party app stores which were allowed to compete with Apple's for iOS users' attentions.
    muthuk_vanalingamphonephreak
  • Reply 46 of 69
    Hreb said: Apple is providing a distribution platform, and they're entitled to a fee for providing that service.
    Apple provides the hardware + the OS + the store + the tools for developing the software. All of those things are being updated by Apple annually and involve large amounts of R&D costs. They're not a passive distributor who is just taking a cut. It's obviously not easy to do, as large experienced tech companies like Microsoft tried to do their own phones and mobile OS etc. and were not successful. 
    tmayBeatsbaconstangh2pwatto_cobra
  • Reply 47 of 69
    avon b7avon b7 Posts: 5,959member
    What on earth is Expedia? I actually don’t know because I mostly buy / book stuff directly. Why pay the middlemen?
    I tried Expedia one, mostly to try it out, but also to save a few dollars. At the end of my vacation I wanted to extend my stay by a few more days by adding some time when I visited the hotel's front desk. The hotel wouldn't let me do that (at the same rate) even though they had lots of empty rooms (it seemed to me.) Was this the hotel's fault, or Expedia's? Either way, the fact that I lose flexibility tells me that I shouldn't use Expedia ever again. I like vacations with flexible dates.
    Didn't you have the option of booking those extra days directly with the hotel, and then simply checking out on the agreed day and checking in for the new stay (which would equate to the extension) ?

    Remember those extra 'empty' rooms may have been taken anyway. 
    edited May 23 phonephreak
  • Reply 48 of 69
    Hey Expedia... what's the typical spread[1] on your currency dealings? 25-30% is not that unusual especially at Airports and tourist hot spots. Reduce your spread across the board and a few of us might listen. [1] Spread is the difference between the buying and selling rates on currency exchanges.
    watto_cobra
  • Reply 49 of 69
    hucom2000hucom2000 Posts: 124member
    Have you looked at his photo up close??

    It’s like his right eye (left when looking at the photo) is inviting you to have a drink with him, while the other eye is - at the same time! - waiting for an opportunity to pounce and kill you.

    Statistically speaking, a lot of people in positions of power are sociopaths… I’m not a expert, nor do I know him, but he freaks the s**t out of me.
    edited May 23 hammeroftruthwatto_cobra
  • Reply 50 of 69
    And I think its disgusting that hotels charge hundreds of dollars for for clean sheets and a shower. Next.
    watto_cobra
  • Reply 51 of 69
    MarcHawkMarcHawk Posts: 9member
    This is laughable coming from the man who built Ticketmaster based on their excessive fees structure. Note that this fact was conveniently omitted from his bio. He merged Ticketmaster with AEG.
    tmaybaconstangDogpersonh2pwatto_cobra
  • Reply 52 of 69
    MacProMacPro Posts: 19,428member
    Dude, try seeing it as you making 70% profit.  Try that with the old, traditional model.
    Dogpersonwatto_cobra
  • Reply 52 of 69
    dv8ordv8or Posts: 26member
    tmay said:
    Oh dear...

    Barry Diller also owns Expedia.com

    "HOW DOES EXPEDIA MAKE MONEY?

    Expedia makes its money in a few different ways. The largest of those ways is through hotel bookings, which the company is mainly known for allowing users to do. A whopping 70% of Expedia’s revenue is generated from hoteliers (people who own or manage hotels). The way that Expedia get’s here in the first place is through a simple supply and demand strategy. Expedia buys up a large number of rooms at a discounted cost and then advertises the bookings through their website as the cheapest you’ll find in the market.

    An example would be Expedia pushing for a 7-night all-inclusive trip to a remote island in the Caribbean. Expedia reaches out to a hotel on the island and buys up a block of, say, 100 rooms at a discounted price (because everything is cheaper in bulk). Expedia than buys a large number of plane tickets going to that island, usually at little to no discount. Then Expedia offers the deal to 2 people at a price like $1,700, which is most likely going to be at least marginally cheaper than it would through other sites. People get a good deal and Expedia is able to fill more plane seats and hotel rooms. And Expedia has only paid a part of what they charge the people for the service, meaning they profit from every transaction.

    Another way that Expedia makes money is through commission fees. Because Expedia always offers the lowest price (or at least a lower price than the hotel will offer), people will be far more willing to actually take a trip in the first place. So hoteliers are far more inclined to sell rooms to Expedia because some money is better than no money. The commission fees are usually between 20% and 25%.

    An example of the way that this works is that if a hotel sells a room (in this example we will use just one room, but in reality, it would be far more) to Expedia for $100 and Expedia gets the room booked, then Expedia will collect that $100 and pay the hotel $75 (if the fee is 25%). They will say that that $25 goes towards customer service, marketing, and various other business functions.

    HIDDEN FEES?

    Expedia makes a little on the side through fees. These fees aren’t hidden, but they’re also not in your face. They can get away with this because they don’t charge users a fee to actually book the hotel, or whatever it is that they are booking, in the first place. These fees include:

    • Cancellation fees when canceling a booking more than 24 hours after booking
    • Fees on some airlines for overweight baggage
    • Wi-Fi fees in some hotels
    • Off resort excursion fees
    • Fees for parking at particular venues
    • Meal fees at hotels
    • Fees at hotels for things like spas, gyms, and pools.

    HOW DOES EXPEDIA GET ITS DATA?

    Does Expedia have full-time employees whose sole responsibility is to troll the internet to find hotels that they can buy rooms from, and then contact those hotels and reach an agreement for those rooms? Definitely not. Expedia has a third party sourcing organization that does all that for them. This method is called “Merchant Inventory.” They have local contractors, essentially the ‘boots on the ground’ people that are collecting data about hotels in different areas as well.

    I'm thinking that this guy needs to have his business model exposed...

    Well said and succinctly put...was going to make the same point...
    watto_cobra
  • Reply 54 of 69
    iadlibiadlib Posts: 84member
    How much money would any of these companies have made without the App Store? Without the iPhone? Go back to using prodigy for your dialup. 
    watto_cobra
  • Reply 55 of 69
    Dear, Barry.
    I was thinking of commenting all your interview remarks in an intelligent manner, but realized my device has too little memory installed. So I will just summarize everything like this:
    We didn’t know you were an idiot. But thanks for telling us.

    Now we also know exactly what brains and values are behind Expedia. I look for trust when I choose my travel agencies …just so you know.
    edited May 23 watto_cobra
  • Reply 56 of 69
    lkrupplkrupp Posts: 9,635member
    And yet, he doesn’t say anything bad about others who charge the same amount...

    It’s a digital retail store. You pay for shelf space and prominent display space. 

    This is getting so dumb. 
    Well, I've been waiting for the usual shade throwers here to remind us that what the others platforms do is meaningless. This is abut evil, greedy Apple and only evil, greedy Apple. Other platforms can charge whatever commissions they want and that’s okay. It’s Apple that needs to be taken down.
    edited May 23 watto_cobra
  • Reply 57 of 69
    tmaytmay Posts: 5,498member
    dv8or said:
    tmay said:
    Oh dear...

    Barry Diller also owns Expedia.com

    "HOW DOES EXPEDIA MAKE MONEY?

    Expedia makes its money in a few different ways. The largest of those ways is through hotel bookings, which the company is mainly known for allowing users to do. A whopping 70% of Expedia’s revenue is generated from hoteliers (people who own or manage hotels). The way that Expedia get’s here in the first place is through a simple supply and demand strategy. Expedia buys up a large number of rooms at a discounted cost and then advertises the bookings through their website as the cheapest you’ll find in the market.

    An example would be Expedia pushing for a 7-night all-inclusive trip to a remote island in the Caribbean. Expedia reaches out to a hotel on the island and buys up a block of, say, 100 rooms at a discounted price (because everything is cheaper in bulk). Expedia than buys a large number of plane tickets going to that island, usually at little to no discount. Then Expedia offers the deal to 2 people at a price like $1,700, which is most likely going to be at least marginally cheaper than it would through other sites. People get a good deal and Expedia is able to fill more plane seats and hotel rooms. And Expedia has only paid a part of what they charge the people for the service, meaning they profit from every transaction.

    Another way that Expedia makes money is through commission fees. Because Expedia always offers the lowest price (or at least a lower price than the hotel will offer), people will be far more willing to actually take a trip in the first place. So hoteliers are far more inclined to sell rooms to Expedia because some money is better than no money. The commission fees are usually between 20% and 25%.

    An example of the way that this works is that if a hotel sells a room (in this example we will use just one room, but in reality, it would be far more) to Expedia for $100 and Expedia gets the room booked, then Expedia will collect that $100 and pay the hotel $75 (if the fee is 25%). They will say that that $25 goes towards customer service, marketing, and various other business functions.

    HIDDEN FEES?

    Expedia makes a little on the side through fees. These fees aren’t hidden, but they’re also not in your face. They can get away with this because they don’t charge users a fee to actually book the hotel, or whatever it is that they are booking, in the first place. These fees include:

    • Cancellation fees when canceling a booking more than 24 hours after booking
    • Fees on some airlines for overweight baggage
    • Wi-Fi fees in some hotels
    • Off resort excursion fees
    • Fees for parking at particular venues
    • Meal fees at hotels
    • Fees at hotels for things like spas, gyms, and pools.

    HOW DOES EXPEDIA GET ITS DATA?

    Does Expedia have full-time employees whose sole responsibility is to troll the internet to find hotels that they can buy rooms from, and then contact those hotels and reach an agreement for those rooms? Definitely not. Expedia has a third party sourcing organization that does all that for them. This method is called “Merchant Inventory.” They have local contractors, essentially the ‘boots on the ground’ people that are collecting data about hotels in different areas as well.

    I'm thinking that this guy needs to have his business model exposed...

    Well said and succinctly put...was going to make the same point...
    I got sidetracked shortly after that post, so missed posting the link; the original source certainly deserves all the kudos;

    https://www.zippia.com/advice/how-does-expedia-make-money/
    watto_cobra
  • Reply 58 of 69
    It’s funny how they like to call Apple out about the 30%, acting like the other app stores don’t do the EXACT same thing 
    What I found funny from the testimony, is that Apple is still planning to charge iOS app makers 30% even if they go outside of the AppStore. I assume the App won't run iOS if it's not signed with a certificate by Apple.
    watto_cobra
  • Reply 59 of 69
    hammeroftruthhammeroftruth Posts: 1,105member
    That pic of him is scary. 
    I’ve seen less threatening smiles on sharks. 
    He looks like a used car salesman. 
    watto_cobra
  • Reply 60 of 69
    hammeroftruthhammeroftruth Posts: 1,105member
    tedz98 said:
    The majority of comments here re: Expedia are missing the point that there are numerous alternatives/competitors to Expedia. With Apple there are no competitors other than Android based platforms. Not really a choice if you see benefits to owning an iPhone. Also the 30% commissions are paid for by the app customers, not really the developers. Tim Cook’s testimony about being concerned about the end user and their safety and experience rings shallow because they are the ones paying the 30% commission through developers such as Epic. It boils down to Apple’s absolute control if not monopoly power over the App Store.
    You seem to be complaining about not doing your due diligence as a consumer to find out that you can’t buy android apps and use them on an iPhone and vice versa. 

    What is the difference between Apple’s control and Google, Sony, Microsoft, Nintendo, Netflix, Hulu, and others? Their platform, their control. I don’t see anyone taking cable companies to court because they are charging too much for their content. 

    The big point you are missing is that Epic had no problem with paying 30% for almost a decade and now they do. Instead of removing Fortnite over a protest of a 30% fee, they decide to violate their contract with Apple. That is not good faith and is something they caused and therefore were not harmed by Apple. 
    AlexMorellomattinozDogpersonh2pwatto_cobra
Sign In or Register to comment.