Marriott, Expedia Sign New Distribution Deal
11 April 2019 - 9:53PM
Dow Jones News
By Aisha Al-Muslim
Expedia Group and Marriott International have finalized a new,
multi-year deal over how much the world's largest hotel company
will pay the online booking giant.
Under the deal, Marriott will continue its long-standing
distribution arrangement with Expedia Group for transient bookings,
the companies said Thursday. The agreement also expands Expedia's
role with Vacations by Marriott, the company's platform offering
vacation packages and travel deals. It also sets a distribution
arrangement with Expedia beyond transient retail bookings that is
expected to launch in the fourth quarter, the companies said.
The agreement, the first since Marriott's acquisition of
Starwood Hotels & Resorts Worldwide in September 2016, is
expected to have broad implications for other hotel operators,
property owners and millions of guests world-wide.
Before the new deal, the two companies had been working under an
extension agreement since their contract expired in November.
Commissions that hotels pay to agencies like Expedia have been
declining steadily because hotel chains have gotten bigger and have
been campaigning to get travelers to book rooms directly with them
by providing discounted rates and incentives.
Overall, Marriott has been looking to reduce its costs to
increase the profit margins of its hotel owners, who pay
franchising fees and own the majority of branded properties.
Online agencies, which market and fill unsold inventory, tend to
serve leisure travelers who want the best deal and aren't loyal to
a brand.
Bethesda, Md.-based Marriott has 30 hotel brands including
Sheraton, The Ritz-Carlton, Westin, Le Méridien, Courtyard and
Aloft. Bellevue, Wash.-based Expedia's hotel listing brands include
Hotels.com, Trivago, Orbitz and Travelocity.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
April 11, 2019 07:38 ET (11:38 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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