Marriott, Expedia Sign New Distribution Deal

By Aisha Al-Muslim

Expedia Group and Marriott International have finalized a new, multi-year deal over how much the world's largest hotel company will pay the online booking giant.

Under the deal, Marriott will continue its long-standing distribution arrangement with Expedia Group for transient bookings, the companies said Thursday. The agreement also expands Expedia's role with Vacations by Marriott, the company's platform offering vacation packages and travel deals. It also sets a distribution arrangement with Expedia beyond transient retail bookings that is expected to launch in the fourth quarter, the companies said.

The agreement, the first since Marriott's acquisition of Starwood Hotels & Resorts Worldwide in September 2016, is expected to have broad implications for other hotel operators, property owners and millions of guests world-wide.

Before the new deal, the two companies had been working under an extension agreement since their contract expired in November.

Commissions that hotels pay to agencies like Expedia have been declining steadily because hotel chains have gotten bigger and have been campaigning to get travelers to book rooms directly with them by providing discounted rates and incentives.

Overall, Marriott has been looking to reduce its costs to increase the profit margins of its hotel owners, who pay franchising fees and own the majority of branded properties.

Online agencies, which market and fill unsold inventory, tend to serve leisure travelers who want the best deal and aren't loyal to a brand.

Bethesda, Md.-based Marriott has 30 hotel brands including Sheraton, The Ritz-Carlton, Westin, Le Méridien, Courtyard and Aloft. Bellevue, Wash.-based Expedia's hotel listing brands include Hotels.com, Trivago, Orbitz and Travelocity.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

April 11, 2019 07:38 ET (11:38 GMT)

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