Amazon comes up with new hotel-booking service

Online retailer Amazon. com Inc has come up with a new hotel-booking service with an aim to entice shoppers who may be browsing for books or music to reserve a hotel stay.

The new hotel-booking service has been launched in three major metros areas. The new service known as Amazon Destinations, lists hotels, inns and bed-and-breakfast spots. On the Amazon site, about 150 properties are posting available rooms.

According to analysts, the move reflects Amazon's rising interest in the profitable travel market. About $458 billion has been generated by the travel and tourism industry in the US last year. Amazon Destinations shows users a collection of available hotels according to area. Presently, it is limited to the Pacific Northwest, Southern California and the Northeast.

"It has an intimate knowledge of its customer's spending habits and preferences. That could allow us to collaborate with them on special offers that could be well-targeted", said Bashar Wali, president of boutique hotel operator Provenance Hotels.

What Amazon was charging the hotel owners for rooms booked through its service has not been disclosed. But it would be competitive with the major online travel agents. Typically, those services charge commissions between 10% and 25%.