This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.  Find out more here  Close
Expedia CEO addresses hotelier concerns
November 27 2012

HotelNewsNow.com recently caught up with Expedia CEO Dara Khosrowshahi, who said commissions paid by hoteliers on OTA bookings are fair.

By Jason Q. Freed
Contributing Editor, Tech Impact Report

PHOENIX—During a break at this month’s PhoCusWright Conference, HotelNewsNow.com caught up with Expedia CEO Dara Khosrowshahi to ask for the online travel agency’s take on a number of key issues affecting the supplier-distributor relationship.

Specifically, Khosrowshahi reiterated that commissions paid by hoteliers on Expedia-based bookings are fair.

“The market forces commissions to be fair. This is a free-market system, and a free-market system is going to push commissions up or down,” he said. “If we weren’t delivering the service to the hotels that we do, I think that we wouldn’t be getting their business. Our business in general is growing with our partners, and I think it will continue to grow.”

Expedia is having a good year in 2012. The company continues to see strength in its hotel business, with roomnight growth accelerating across all major regions. In the third quarter of 2012, international points of sale delivered 50% of Expedia’s total roomnights for the first time in the company’s history.

Expedia has been working on an end-to-end program to connect with hotels, and the result has been faster roomnight growth, Khosrowshahi said. The next step for the company, he said, is to focus on packages, which up until this point have been “battling macro headwinds.” He said packaging hotel rooms with airfare is a win for hoteliers because packaged business brings longer lengths of stay and attracts international visitors, both of which can be leveraged by smart hotel revenue managers.

COMMENTS   Show All
Teresa Matsui Sanders
11/28/2012 6:29:00 AM
Whether or not Expedia is a brand, it and other OTAs have exploited the commoditization of hotel rooms. And whose fault is that?
Tiredofbeingpushedaround
11/27/2012 1:13:00 PM
Expedia is not a brand. It is company that attempts to strong arm hotels into making Expedia more money with no consideration to the hotel idustry or its effects on it. I can't believe I just wasted moments of my life listening to this BS.
Really?
11/27/2012 12:33:00 PM
I am surprised that this was such a one-sided piece without any questions asked towards the comments, which were obviously spin. The devil's in the details and this article didn't cover any details or follow-up questions.
Login or enter a name   Post Your Comment  Check to follow this thread via email alerts (must be logged in)
(4000 characters max)

Comments that include links or URLs will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff

TRENDING
Keycard ‘revolution’ at Hilton’s front door
Revenue management tips to capture more demand
June US hotel occupancy best of this century
Affordable luxury propels CitizenM’s growth
How to implement a rooms upselling program
Hilton to roll out smartphone keys
VIDEO
NYU Investment Conference Recap
Hunter Hotel Conference postgame wrap
Bazin outlines Accor investment strategy
Accor's Bazin talks growth
Sébastien Bazin's view from the top
LATEST NEWS
Q2 2014 earnings roundup
FelCor Lodging Trust prepares for new era
Hyatt active in buying, selling
Where airlines are kicking hoteliers’ butts
5 things to know: US June hotel performance
Renovations boost ESA performance
Contact Us
Hotel News Now
18500 Lake Rd.
Suite 310
Rocky River, Ohio 44116
        
Copyright © 2004 - 2014 Hotel News Now, a division of STR, Inc. All Rights Reserved.   Privacy