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Best Western Backs Choice In Expedia Feud

October 27, 2009

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.

Posted by Adam Kirby on October 27, 2009 | Comments (19)

November 5, 2009
In response to: Best Western Backs Choice In Expedia Feud
Expedia foul commented:

Working at a Choice mid-level hotel with 65 rooms.We have had alot of trouble with Expedia.At times when hotel is sold out or near sold out expedia overbooks rooms even thou system tells them they are overbooking us.Expedia went to a virtual card system (fake visa) instead of paying hotel with check.More then once if we get a no show for a room Expedia canels the fake visa number so we can not get payment for the no show after we held the room and turned away others.Expedia also fells to update hotel policy (no pets) and room dicriptions only after 10 or more phone calls and about 6 months


November 3, 2009
In response to: Best Western Backs Choice In Expedia Feud
Hotel Owner commented:

Choice dropped the ball by waiting so long to renegotiate their deal. They left Expedia with the leverage by waiting until this current economic downturn.


October 29, 2009
In response to: Best Western Backs Choice In Expedia Feud
CR Chain Revenue Director, SPAIN commented:

We will support this attitude´s change with all our resources. We need to find an equilibrium between OTAs and Hoteleirs. The current situation will destroy the entire hotel industry.


October 28, 2009
In response to: Best Western Backs Choice In Expedia Feud
eastern europe dos commented:

Expedia effectively practice Divide & Rule principle both for compititive hotels as well as for chains and their franchisees. Their recent appeal to Choice franchisees clearly shows how they act. Chains should be aware that if they continue feeding the monster, it will even try to influence their relationships with owners.


October 28, 2009
In response to: Best Western Backs Choice In Expedia Feud
Out In Colorado commented:

It is about time that the hotel chains stood up to Expedia. In this economy, hotels need to stand up for their rights, or they won't be standing at all.


October 28, 2009
In response to: Best Western Backs Choice In Expedia Feud
Adam Kirby commented:

If Best Western members collectively decide to cancel their Expedia agreements, which is what is apparently under consideration, it has the same net effect. Perhaps "break off negotiations" wasn't the best phraseology I could have used, but the impact is basically the same.


October 28, 2009
In response to: Best Western Backs Choice In Expedia Feud
hot garbage commented:

Hey kid, why don't you check your facts a bit more before posting this hot garbage? Best Western does not even have a corporate agreement with Expedia. All of those properties on their channel are independents. It's like having an ex girlfriend go around and tell all your friends that she is really thinking about breaking up with you if you don't propose. Pure crazy. Seems like people like you should be more responsible, but I guess having a keyboard gives you license to post whatever crap you want.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
BW Owner commented:

WE stop dealing with them long time ago, we did not see big difference in our revenue. As a matter of fact we have less guest complains, our ADR is higher than before on all the channels. To all the hotel owners & GMS' do not give them inventory & they will be out of business soon. They are the ones who leach on us by making fun of the our marketing & advertising. This is the time we can bring Expedia & alike to their knees. Stop giving them product to sell for 60 days, they will come back to you wagging their tails.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
GM Best Western commented:

Bravo to Choice for taking the stand. It's about time someone said enough is enough. When we have to give them a 1/3 of our room rate then its time to put our foot down. Personally, I cut off inventory back in April to them yet we still are booking rooms through other channels without the blood suckers.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Multi Franchise Owner commented:

We need to band together and address the impact that the TPI's. Third party intermediaries are having on our industry. They are not travel agents, they are simply marketing - technology companies that are using our money to advertise themselves to our customers. They dont employ one front desk clerk, pay one mortgage or properrty tax bill. They are only successful because they pick on us and our brands one at a time. They believe we are too weak and distracted to understand what they are doing. Why have the airlines told them to take a hike. Delta, USAir and United dont pay 18 to 30% to these guys to resell air travel. Why are we? In fact, these third parties are using the money that we hotel folks give them to advertise air travel! We need to work together. 5% commision would be reasonable.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Rob, Asset Manager commented:

It is time for the sleeping giant to awaken. No hotel should ever under cut their own websites with lower OTA rates being offered. Do a web search to make sure your own name is not being purchased by the OTA's to get top of page listings for paid search. The cost is minimal and your message should direct the guest to you. Don't give up your margins. Fight to defend your margins.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
hhotelconsult commented:

Incredible comments above. I really hope something becomes of this! Well done BW!


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Tom commented:

Expedia & Hotels.Com mislead the public. In their commercials they state that they have a QA Dept. (Remember the black SUV'S & the guy with the bad sunburn?) They don't have such a department. Their the ones that was charging a cancellation fee when we agreed to cancel a reservation as goodwill. They still charged the guest $25 and made it seem as ifthe hotel was doing the charging. C'mon Hilton, IHG, Starwood get on the train.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Pro OLTAs commented:

Stop bashing Expedia and other OLTA's. As a franchisee of Choice hotels, Best Western, Marriott, Hilton, Hyatt, and Starwood...the solution is simple...If you need Expedia and willing to play by their rules...enroll your property. If you don't want their business or their rules...don't partner with them. Stop making this so one sided for the hoteliers.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Jay patel commented:

I hope all other brand join with Choice. We need to unit in this fight.Our ADR is decline from last 2 year.This will help in longer time.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Patrick Brennan, CHA commented:

Good news indeed, as Best Western's support will likely provide the momentum that other hoteliers need in order to get off the fence. It looks like Expedia's heinous power play is being appropriately rebuffed by hoteliers. It's wonderful to see that our industry realizes the benefit of standing together on this issue and getting behind Choice. We will all win with an amicable resolution that favors our hotels on this matter.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Chris commented:

Best Western currently does not have a master agreement with Expedia. Individual properties are able to do their own deals with Expedia if they wish. Best Western has never been able to reach a deal with Best Western due to their excessive demands. Expedia doesn't understand win-win. hey just think they do. Due to the fact that Best Western is a member organization, staff is limited on the authority they have without a vote of the membership.


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Regional Manager Chain Hotel commented:

This needs to be done, Give the power back to the Hotel Franchisees not Internet sites like expedia. Smallers hotels need this


October 27, 2009
In response to: Best Western Backs Choice In Expedia Feud
Baku GM commented:

I hope and pray that all major chains are paying attention to this feud. This is now or never chance for hotel management companies and owners to stop the ADR decline and margins restored. Be brave and be counted.

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