I work in the travel space and have worked on the business/marketing side for metasearch as well as dedicated hotel sites. Based on what's been shared by the Hipmunk team, I think I have a ballpark analysis of their rev-mets:
150,000 searches/month
40% CTR to Orbitz/Suppliers - 60,000 outbound clicks
15% Conversion to Booking - 9,000 bookings
$300/booking average revenue - $2.7M revenue (meshes with the comment that they generate millions of ticket revenue to suppliers per month)
$3 bounty/booking - $27,000 / gross rev per month
$324,000 annual revenue run rate
$180 average RPM (rev/1000 searches)
It's cash flow positive and has no external marketing expenses really. The ITA agreement will entail cost per search but they will make it up by having access to all fares which will give them near price parity with the likes of Kayak and others. Hope this breakdown helps.
Looks good, although a little Drake Equation-y. Would you mind telling us where your figures are coming from? The figures all seem reasonable, but there's a lot of room for error there.
150,000 searches/month 40% CTR to Orbitz/Suppliers - 60,000 outbound clicks 15% Conversion to Booking - 9,000 bookings $300/booking average revenue - $2.7M revenue (meshes with the comment that they generate millions of ticket revenue to suppliers per month) $3 bounty/booking - $27,000 / gross rev per month $324,000 annual revenue run rate $180 average RPM (rev/1000 searches)
It's cash flow positive and has no external marketing expenses really. The ITA agreement will entail cost per search but they will make it up by having access to all fares which will give them near price parity with the likes of Kayak and others. Hope this breakdown helps.