Expedia Appeals Directly To Choice Franchisees
-- Hotels, 10/23/2009 10:04:00 AM
In a letter sent to Choice Hotels International franchisees, Expedia Inc. expresses dismay at Choice's decision to withdraw from negotiations, claiming it never made any demands that are not already in place with other hotel companies.
The letter, which was obtained by hotel technology blog Tnooz.com, not-so-subtly suggests that Expedia remains open to negotiations with franchisees on a property-by-property basis. Expedia also denies fault for the breakdown in negotiations with Choice.
"Choice inaccurately lays the blame for failure to reach acceptable terms for working together squarely on Expedia's shoulders," the letter states. "We are disappointed that Choice has decided to take what amounted to good faith negotiations concerning the terms of our ongoing business relationshiop and publicize them in such an inaccurate and misleading manner."
The letter goes on to portray the negotiations with Choice as essentially routine, saying that Choice balked at conditions that had already been in place in a de facto arrangement: "Many of the issues that Choice has cited as responsible for the inability to reach a new agreement already formed part of our day-to-day relationship during the prolonged extension period." Expedia does not detail what those conditions were.
In fact, the letter does not specifically address any of the objections voiced by Choice CEO Steve Joyce, who described Expedia's demands as "outrageous" in an interview this week with HOTELS. Joyce says Expedia demanded last-room availability and low-price guarantees.
Expedia has declined previous inquiries from HOTELS seeking direct comment regarding the Choice negotiations.
An Expedia representative is scheduled to participate in HOTELS' upcoming live Webcast, "Working With Intermediaries Online," which will be conducted on Thursday, October 29. Click here for free registration.
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I have a Choice hotel in S. Calif. and I can tell you that Expedia is nothing more than a profit squeezing bully as all they tell you is..."give us 30% and you will move up in placement", garbage. It is a racket that we need to ween ourselves off of....thank you Choice for staying strong.
M.P. - 2009-24-10 19:07:00 PDT -
Expedia will fail at their direct appeal to franchisees because there is no way that Choice will sign the waivers that Expedia is requesting franchisees present to Choice. Our waiver went in the trash. Expedia is trying the divide and conquer strategy, preying on the owners desparation in a down economy, but again, it won't work. It's almost comical how Expedia refuses to answer any questions about their part in this showdown, which speaks volumes in and of itself. If they had nothing to hide and didn't do anything wrong, you would think that they'd be more forthright in addressing this situation. The sheep is indeed a wolf!
Diane Hines - 2009-23-10 13:21:00 PDT -
Expedia is frightened, and having dealt with them before... is it any surprise 1) that we are outraged, 2) that we don't trust them, and 3) that expedia is backing WAY WAY down from their extortion because they are scared of the industries response.
I say we do our best.... drop expedia, get the word out.. and just play nice with the others. The best time to take a risk like that is during the bottom of a bad economy... if enough hoteliers and single prop owners see long term, and do not exploit our unity by remaining on it to pick up one or two extra rezzies.....
I say we could shut them down, or cripple them. It's been coming for a long time.
I know it's unlikely, and the diplomatic solution will be met between the two... I am sure of it.
But their unethical or shady practices seem to be unifying us in this.... it's ridiculous. Time for them to get real, and start negotiating real business terms.
Michael Hraba @hhotelconsult - 2009-23-10 12:05:00 PDT -
DONT SIGN CONTRACT WITH EXPEDIA..THINK LONG TERM...WELL DONE MR. JOYCE..KEEP IT UP..N PERSUADE WYNDHAM & BESTWESTERN TO FOLLOW THE SAME..WHILE AIRLINE COMPANIES R NOT PAYING ANYTHING FOR BOOKING DONE BY EXPEDIA..WHY SHOULD HOTEL INDUSTRY PAY..ITS THE FRANCHISEE ( HOTEL OWNER ) WHO SUFFER..I THINK HOTEL GROUPS HAVE ARRANGEMENT WITH EXPEDIA N OTHER OTA..TO SPLIT THE EXORBITANT COMMISSION OF 25/30 %...IN TODAYS WORLD ITS EASY TO FIND HOTELS ON SEARCH ENGINE..WHICH GOOD FOR HOTEL WHO R TAKING THE MILLIONS OF DOLLARS RISK..N WORK LONG HOURS..N GOOD FOR GUEST TOO...AS THEY DONT HV TO PREPAY / OVERPAY N GO THROUGH OTER INCONVENIENCY...REMOVE COMMISSION FROM ALL `OTA`..LIKE AIRLINE INDUSTRY...THEY( OTA ) CN CHARGE THE BOOKING FEE TO GUEST WHO WANT TO SHOP AROUND ON OTA SITES...THEY ARE PROVIDING SERVICE TO GUEST AND NOT THE HOTELS...KEEP IT UP CHOICE...70 % FRANCHISEES ( HOTEL OWNER ) R WITH U....
vipul - 2009-23-10 12:00:00 PDT -
Expedia and other of their ILK are nothing but leaches. I hope and pray that Choice franchises do not fall in this lear......
Baku GM - 2009-23-10 11:42:00 PDT
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