Why do other on-line sites charge a smaller service fee for airline reservations?
Most on-lines sites such as Expedia, Orbitz, and Travelocity make their money on hotel reservations. They are able to purchase large blocks of hotel rooms and sell them back to the consumer at a mark-up. Example: A hotel room that normally costs you $100 may only be $75 per night on Hotels.com even though they purchased the room at a volume rate of $45 per night.