April 29, 2016

Expedia open to new business models with hotel chains

In an attempt to blunt the direct booking drive by many hotel chains, Expedia is testing new business models such as linking users from Expedia to hotel websites and helping chains sign up new members for their loyalty programs.

In meeting new challenges, Khosrowshahi said Expedia wants to be flexible in working with partners and therefore is experimenting with these new business models.

Those hotel chains that “play well with us” will build great partnerships, and those that don’t will risk losing share and audience on Expedia sites, said Expedia CEO Dara Khosrowshahi during the company’s first quarter earnings call April 28.

On the link-offs of customers from Expedia to hotel sites, Khosrowshahi said metasearch sites such as TripAdvisor and Expedia’s own Trivago have been doing this for years.

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