{"id":80776,"date":"2025-08-22T14:31:02","date_gmt":"2025-08-22T13:31:02","guid":{"rendered":"https:\/\/proxidize.com\/?post_type=blog&p=80776"},"modified":"2025-10-02T11:44:06","modified_gmt":"2025-10-02T10:44:06","slug":"price-comparison-sites","status":"publish","type":"blog","link":"https:\/\/proxidize.com\/blog\/price-comparison-sites\/","title":{"rendered":"How Do Price Comparison Sites Get an Edge?"},"content":{"rendered":"\n

It seems inevitable today that everyone\u2019s had at least one interaction with a price comparison site. From cars and apartments to hotels and flights, there\u2019s a price comparison site, also called a comparison shopping engine (CSE), dedicated to finding you the best price.<\/p>\n\n\n\n

In this article we\u2019ll discuss what sets CSEs apart from other price aggregators, how they make their money, and where they get their data from. Finally, we\u2019ll get to the heart of what fuels price comparison websites\u2019 competitive edge.<\/p>\n\n\n\n

As there are so many businesses in this industry, to help illustrate our points we\u2019ll specifically be using travel price comparison sites to illustrate our examples, although anything discussed here applies generally to the CSE industry as a whole.<\/p>\n\n\n\n

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What Is a Price Comparison Website?<\/h2>\n\n\n\n

On paper, price comparison sites (or CSEs as they\u2019re officially known) specialize in presenting you with products or services at the lowest price, based on your needs or parameters.<\/p>\n\n\n\n

Price comparison sites aren\u2019t online marketplaces, they\u2019re middlemen. They make money from the companies whose services and products they list advertisements for.<\/p>\n\n\n\n

Skyscanner<\/a>, for example, defines<\/a> itself as \u201ca comparison website\u201d that generates revenue \u201cthrough a\u202fcombination of advertising and commission from our partners\u201d. It does this for flights, hotels, and car rental companies.<\/p>\n\n\n\n

A CSE doesn\u2019t make any purchases on your behalf, it only puts you into contact with the company offering you the service, whether it\u2019s an airline, hotel, car rental company, or travel agent.<\/p>\n\n\n\n

However, this begs the question: What\u2019s the difference between a price comparison site and an online marketplace?<\/p>\n\n\n\n

Price Comparison Sites vs Online Marketplaces<\/h3>\n\n\n\n

To the consumer, the difference between a price comparison site and an online marketplace as it relates to price aggregation is not a meaningful one. When you\u2019re trying to organize a holiday, the fact that Booking.com<\/a> and Skyscanner have two different business models \u2014 the former an online travel agent (OTA) and the latter a CSE \u2014 doesn\u2019t matter to you. As long as you\u2019re able to compare prices between hotels you\u2019re happy.<\/p>\n\n\n\n

A CSE\u2019s business model is exclusively price aggregation. By contrast, an online marketplace may offer price comparisons, but that is only part of its business model. The fact that many, if not most, CSEs and online marketplaces are vertically integrated<\/a> adds to this confusion. The same company may own several CSEs and OTAs that cover every aspect of travel from flights to hotels and rentals across every continent.<\/p>\n\n\n\n

Let\u2019s take a side-by-side look at the differences between the two companies we mentioned to illustrate the differences.<\/p>\n\n\n\n

Feature<\/strong><\/th>Booking<\/strong>.com<\/th>Skyscanner<\/strong><\/th><\/tr><\/thead>
Business Model<\/strong><\/td>OTA<\/td>CSE<\/td><\/tr>
Core Function<\/strong><\/td>Transaction platform<\/td>Comparison engine<\/td><\/tr>
Who Owns the Transaction?<\/strong><\/td>Booking.com<\/td>OTA, airline, hotel, etc.<\/td><\/tr>
Revenue Model<\/strong><\/td>Commissions: hotels, airlines, and hosts pay per completed booking<\/td>Referral: partners pay per click\/redirect (CPC model)<\/td><\/tr>
Incentives<\/strong><\/td>Maximize bookings completed on own platform<\/td>Maximize number of referrals to partners<\/td><\/tr><\/tbody><\/table>
Source: Proxidize<\/a><\/em><\/figcaption><\/figure>\n\n\n\n

Examples of Price Comparison Sites by Industry<\/h3>\n\n\n\n

To give you a selection of CSEs by industry, some of which might be familiar to you.<\/p>\n\n\n\n

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  1. Travel<\/strong>\n