According to the report from Skift, Amazon Travel will rollout early next year in select cities. Like Priceline and Expedia, Amazon.com will collect a fee from hotels that sell rooms on its site, reportedly a commission of 15% on the sale price. If accurate, Amazon.com's fee structure and operations would be very similar to Priceline and Expedia. That would be good, because besides marketing and technology infrastructure costs, expenses for online travel sites are relatively low. As a result, margins are high, with Priceline and Expedia having operating margins of 36% and 11%, respectively, over the last year. Notably, the reason Priceline's margin is higher is because it has made more efficient investments historically, as seen in its 31% return on equity versus 15% for Expedia. That said, Amazon.com's core e-commerce business is anything but highly profitable, having an operating margin of just 0.1% over the last twelve months. Amazon Travel could be a service to create bottom line profits, increasing free cash flow and making investors very happy long-term. Not to mention, it would satisfy analysts who cited profit-related concerns as reasons for recent stock downgrades and price target reductions; Cowen, SunTrust, Canaccord, and Janney Montgomery Scott all made such observations after Amazon.com's last quarter. Get the full story at The Motley Fool Read also "Online travel firms: Enter Amazon" at The Economist