Best Western Backs Choice In Expedia Feud
Choice Hotels International may soon have a major ally in its war against Expedia.
At its annual convention last week, Best Western International members and executives voiced support for rival Choice, with Dorothy Dowling, senior vice president for marketing and sales, even hinting that Best Western is prepared to make a similar stand against Expedia’s demands.
According to a report from Hotel News Now, Best Western members "indicated they’d be willing to join Choice Hotels International in pulling Best Western hotels from Expedia," and that "Best Western is balking at Expedia’s demand for last room availability, a three-year term with no exit clause, and a 25% net rate."
Dowling told the audience of Best Western member hoteliers that the company has begun working with Expedia’s competitors "far more aggressively to define our market share" and to establish "more favorable business terms on inventory assignments,” comments which drew applause.
As I wrote last week, the hotel industry has an opportunity here to reclaim long-term negotiating leverage from the OTAs, if only more hoteliers join Choice in standing up against Expedia. The OTA-hotelier relationship is, at its core, a symbiotic one, but hoteliers must never forget that OTAs need them more than they need OTAs, for without the hotels providing inventory, the OTAs have no actual product to offer.
If Best Western does in fact break off negotations with Expedia, as Choice did, it could change the online booking paradigm forever and shift the negotiating power back to the hoteliers, where it belongs.
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