A cyber war has erupted in recent weeks between major online travel agencies such as Expedia (EXPE) and Priceline.com (PCLN) and hotel chains over how some discounts are being offered to consumers.
Earlier this year, Marriott (MAR), Wyndham (WYN) and Hilton Worldwide (HLT) stepped up their efforts to lure consumers away from the online travel agencies, or OTAs, by directly offering discounts on room bookings. The discounts leave the OTAs out of the picture -- and out any fees or commissions on the bookings.
Expedia and Priceline, the two largest OTAs, are fighting back against these direct-to-consumer offers by making the hotels harder to find on their sites, according to industry experts.
Airlines, hotels hold back from online travel sites
Bellevue, Washington-based Expedia strips out descriptive details of some hotels -- such as pictures -- and buries listings deeper in its search results, an e-commerce practice known as "dimming," according to lodging sources. Priceline's Booking.com site has lowered the rankings of some hotels even though it keeps the pictures online, according to OTA Insight, a travel technology company.
The stakes are high for hotel companies, which can lose bookings when the travel sites alter their search results. According to the industry data firm STR, hotel chains in the U.S. collected $142.6 billion in room revenue last year, compared with $132.8 billion in 2014.
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