According to a source outside the company, Expedia believes the agreement is netly neutral in terms of revenue in terms of the mix of independent hotel reservations and hotel bookings as part of vacation packages compared to the previous contract. In other words, if one wants to believe this characterization, Expedia does not take and Marriott is not disadvantaged. The new agreement does not seem to change this dynamic. Each page separately communicated the details of the new agreement to employees and/or hotel owners on Wednesday and Thursday. As far as homeowners are concerned, Marriott has adopted an asset-light strategy, so many of its properties are independent. This means that hotel owners should have some autonomy and be aware of the terms of the agreement. Federal and regional cartel laws prohibit business-to-business agreements that would harm competition. The Travelpass complaint accuses Expedia, which also owns Orbitz, Hotels.com and Trivago, of actively entering into agreements between its partner hotels to avoid brand keyword offerings on Google`s AdWords platform and to go so far as to provide compliance monitoring reports. Expedia has also allowed affiliate agencies such as Travelpass to follow company policies or lose access to hotel room inventory. Of course, these negotiations were considered potentially default for the hotel industry prior to the agreement, if a now larger and stronger marriott could drop commissions or other concessions from Expedia. Lugli said the Expedia-Marriott agreement « will be a good assistant for other agreements that will follow in a year or two. » Greg is the president of the company`s national hospitality, travel and tourism practice, which focuses on the diversity of business-oriented business faced by members of the hotel and tourism industry, including management agreements… Expedia Group and Marriott International have signed a new agreement that provides that from October 15, 2019, Expedia Group will become marriotts` exclusive optimized global distributor of wholesale prices, availability and content to a network of global travel providers.
Flo Lugli, head of the Navesink Hotel Distribution Advisory Group, told Skift that agreements such as the new Marriott-Expedia pact were complex and should not be oversimplified, as that party or company yields commissions or margins of a certain percentage. « The mixing rate is probably pretty consistent, » said Lugli, who sits on an expedia advisory committee of experts to discuss the changing dynamics of the travel industry, referring to the new Expedia-Marriott agreement over the previous agreement. « This may change for individual hotels, but profitability remains largely the same. » « With this new agreement, we look forward to seeing how we can move forward with a new customer acquisition, given the improvements made to the product and customer experience during immediate booking, » said Aaron Price, Senior Vice President of Global Marketing, Expedia, Inc.