U.S. hotels bank on loyalty programs in push for direct booking
Jul 19, 2017
Hotel loyalty programs have helped U.S. chains such as Hyatt, Hilton and Marriott score more bookings on their own websites, luring customers from online travel agents that had seen commissions balloon to an estimated $3.5 billion a year.
Grabbing a bigger piece of the reservations pie has become a priority for chains trying to limit the flow of commission dollars to companies like Expedia Inc and Priceline Group Inc.
"It's costly for hotel companies," said Telsey Advisory Group analyst David Katz. "Necessary, but costly."
Cutting commissions is important enough that the hotel chains have made it easier for loyal customers to win free stays. This has helped them gain ground, although online travel agents still account for the overwhelming majority of U.S. hotel bookings.
Get the full story at Reuters
