KAYAK operates primarily as a metasearch engine, meaning its business model is built on being a "middleman" rather than a direct seller of travel. KAYAK makes money through three main streams: referral fees (commissions), advertising, and "cost-per-click" (CPC) marketing. When you search for a flight or hotel on KAYAK and click a link to complete your booking on an airline’s or hotel’s own website, that provider pays KAYAK a small fee for the lead. Unlike an Online Travel Agency (OTA) like Expedia, which takes the payment directly, KAYAK earns its revenue by directing traffic to others. Additionally, KAYAK generates significant income by selling targeted ad space to travel brands that want their deals to appear at the top of search results or in sidebar banners. They also use "sponsored placements" where providers pay to be featured more prominently. By aggregating data from hundreds of sources, KAYAK provides value to the user for free while capturing a fraction of the marketing and distribution budgets of the massive travel corporations that rely on the platform to reach millions of high-intent shoppers every day.