NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) are up 1.14% to $334.30 in pre-market trade after it was reported that the company is set to launch its own travel service, featuring booking at independent hotels and resorts near major cities, according to Skift, an industry intelligence and marketing platform in travel.
The initial rollout of Amazon Travel would feature a curated selection of hotels within a few hours' drive from New York, Los Angeles, and Seattle. The service will likely go live around January 1.
The hotels would generally list their properties at rack rates, but would be free to discount, one hotelier said.
Hoteliers would receive their payments from Amazon for the stays in two installments and could obviously attempt to negotiate a lower commission than the standard 15%, Skift said.