Hotels must compete for Expedia visibility

Expedia changes hotel business model with bidding
Expedia is altering its business model for hotels listed on the site by introducing a bidding process. Properties have to bid against each another for the best placement in search results at Expedia brands such as Expedia.com and Hotels.com.
The changes have been brought in quietly, with no official launch, but could have major implications for the way hotels and other travel businesses are listed by online travel agencies.
Expedia CFO Mark Okerstrom told Skift about the new Accelerator program for hotels, saying that it turns Expedia’s search results pages into a “marketplace” where hotels compete against each another to get the most visible spots on the page – driving better bookings.
“We are also offering the opportunity for hotels to augment that quality nature of their listing with incremental economics to help give them a little bit of a boost,” he said. “We just transitioned the model to one of much more of a marketplace. So I think we will leave it to the various hotel companies to dictate for themselves how they use our marketplace and we would encourage them to do it in a way that maximises what’s best for them.”
The basics of the Accelerator program were finalised towards the end of 2015.
“We have transitioned our business over the course of this last year and we are going to continue to transition in 2016 to much more of a marketplace. You know, a marketplace where hotels can compete against the right people – not us – compete against each other for the vast amount of traffic and bookings that our booking platforms […] provide.”
Skift

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