It is a pity that Cheap Flights have chosen to stop working with affiliate sites like ourselves, but I am told they have some site modifications to make. They have made no secret of the fact that they intend to float later on in the year.
Cheap Flights published turnoved (according to recent travel trade press) is £18m. Profit margins are reported as being “healthy”, but have been previously reported as “around 20%”.
Their business model is largely based on some good “organic” search listings on Google, which are highly volatile - even that hallowed “#1 for cheap flights” has been knocked a few times recently. Cheap Flights is a useful comparison tool on some routes, but the site provides no information about two of the largest airlines which actually provide cheap flights (Easyjet and Ryanair).
Sure, its a great domain, so if this business is really worth £200-250m, then that has to be great inspiration for all the other tavel websites out there. Assuming the 20% profit margin, their annual profits would be £3.6m, so we’re talking about multiples of 55 - extremely positive for an internet business.