Expedia to launch new media-based pricing model

November 15, 2007 | Hospitality Industry

InterContinental Hotels Group is participating as the launch partner for Expedia's new media-based pricing model. The dynamic, two-part economic model will blend transaction pricing with media pricing based on clicks on specific properties in Expedia.com and hotels.com search results.

IHG (InterContinental Hotels Group) has entered into a multi-year agreement under which consumers can now book IHG hotels on Expedia sites globally. The agreement will result in the addition of more than 3,700 hotels across all IHG brands to the hotel selection on Expedia and hotels.com branded points of sale globally, as well as Hotwire and Expedia Corporate Travel.

“IHG continually seeks to extend the reach of our brands to deliver our customers additional convenience in booking their accommodations and we are delighted to work with Expedia in such a way that will greatly benefit our guests,” said Eric Pearson, senior vice president, Distribution Marketing, IHG.

As a further testament to the relationship, IHG is participating as the launch partner for Expedia, Inc.’s new media-based pricing model. The dynamic, two-part economic model will blend transaction pricing with media pricing based on clicks on specific IHG properties in Expedia.com and hotels.com search results. Expedia and IHG collaboratively developed this innovative approach to distribution marketing—a first in online travel—where IHG will receive significant benefits from value-added media placement throughout the Expedia network in addition to the bookings they receive from Expedia.

“This agreement with IHG not only underscores Expedia, Inc.’s focus on forging long-term, mutually beneficial relationships with our partners, but it also exemplifies our innovative approach to working with them,” said Paul Brown, president, Expedia North America and Expedia, Inc. Partner Services Group. “We believe that our new media-based pricing model is truly ground-breaking in its ability to help our hotel partners maximize both their exposure to, and transactions from, the highly qualified customers in Expedia, Inc.’s global marketplace.”

“We are pleased to be the launch partner to Expedia, as IHG has always been an innovator in the online arena,” added Pearson. “As one of the largest online advertisers in the industry, we welcome new opportunities to further leverage our marketing spend and return on investment in the online space.”

IHG properties are currently available on Hotwire.com. They will be available on Expedia Corporate Travel by December 2007, with all participating hotels becoming available on Expedia and hotels.com branded sites globally in 2008.