Hoteliers challenge Expedia’s Orbitz deal
Print Edition
THE hotel industry is objecting to the acquisition of Orbitz by former rival Expedia, saying it would lead to higher prices for customers and larger fees for hotel owners.
“We believe the transaction and the resulting consolidation of the online travel marketplace will result in significant negative consequences, particularly for consumers, but also for the large number of our members,” said Katherine Lugar, chief executive of the American Hotel & Lodging Association.
Expedia early this year said it would buy Orbitz for US$1.3 billion. It had hoped to complete the acquisition in the second half of this year, but the proposed buyout is still under review by the Justice Department.
The hotel trade group said on Thursday that the deal would “severely reduce consumer choice.” It also said that Expedia charges hotels, on average, 11 percent higher commissions than Orbitz.
Many smaller, independent hotels rely on these sites to attract travelers who otherwise would not have heard of their properties.
If the buyout goes through Expedia and competitor The Priceline Group Inc will control 95 percent of the online travel agency bookings in the United States, according to the hotel trade group. Priceline owns sites such as Booking.com and Kayak.
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