Expedia’s Evolved Relationship With Marriott International And Its Significance
Expedia has struck up an alliance with Marriott International wherein the leading global OTA will help the hotel chain sell more hotels on Marriott’s own website. This might seem complicated at first. While Expedia competes against the various hotel chains’ direct selling efforts, and tries luring customers on to its own website, why did it suddenly decide to help Marriott sell more inventories directly?
Since the beginning of September, Expedia has started powering hotel vacation packages and flights for Vacations by Marriott. Expedia powers the technology, flights, ground transportation, and tours and activities, while Marriott provides its own hotels.
However, Marriott’s website is devoid of Expedia’s branding though the site has similarities in appearance with Expedia.com. Users have the opportunity to earn Marriott’s Rewards points while they book and they can also combine hotels and flights in a package. The current relationship is restricted only to the U.S. and does not impact the commission rate that Marriott had been paying Expedia for so long.
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In related news, Expedia has recently tied up with Red Lion Hotels and currently offers its ‘members only’ rates (erstwhile available only on the hotel’s website for direct booking customers) on Expedia.com and Hotels.com. Expedia has been furthering its relationships with its hotel partners through other means as well. For example, the launch of Travel Ads Direct, that pays per click links from Expedia to its hotel partners.
The Significance Of Collaborating Closely With Hotel Chains
- The rivalry between hotel chains and OTAs to lure customers to book through their respective websites might be leading to hotels slashing their prices to attract direct bookings and OTAs also creating more attractive offers to facilitate bookings through their sites. This might imply bottom line erosion for both the parties. Collaborating with each other might enable them to reap a higher profit as well as form a symbiotic relationship where each can take advantage of the other’s strengths.
- After Expedia’s new formed alliance, Marriott’s CEO has mentioned that their relationship with Expedia might be further expanded beyond the latter being a mere distributor. This might again help in Expedia’s own growth.
Have more questions on Expedia? See the links below.
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