Though not completely unexpected (in April, the two companies openly admitted they were working together on a distribution platform), the Expedia Partner Solution/Marriott agreement created an unprecedented event in the industry. But, if it is indisputable that having all the wholesale distribution transitioning through EPS will improve Marriott properties' accuracy and consistency across third-parties, the assumption that this deal will ultimately help Marriott regain control over their rates and inventory is, at best, debatable. EPS technology does not, in fact, prevent bedbanks (or Expedia itself, for that matter) from distributing wholesale rates. So, does the deal only means that EPS is going to play detective with bedbanks on Marriott's behalf? Or the partnership between these two travel Goliath has the potential to fix a distribution model that's inherently rotten? What's your take?

Max Starkov
Max Starkov
Hospitality & Online Travel Tech Consultant

The new arrangement between Marriott and Expedia is very much like the arrangement Marriott has with the GDS like Sabre, Amadeus and TravelPort i.e. as with a technology distribution platform. If you are a travel agency or a TMC, talk to the GDS how to access Marriott's inventory, availability and retail pricing. If you are a small to midsize tour operator, bed bank or wholesaler, talk to Expedia.

Much more efficient and cost effective for Marriott, compared to having to deal with direct connects with smaller players, or paying transaction fees to DHISCO and the GDS as is the case with many of these smaller wholesalers today.

So going forward I believe the following will happen:

- Marriott will continue to work directly with all the big tour operators and wholesalers, and with all of its existing direct connects, same as before.

- Marriott will push the midsize and smaller tour operators and wholesalers to use Expedia's EPS as it is more cost effective to Marriott, compared to the GDS or DHISCO.

Whatever Marriott pays per reservation to DHISCO or the GDS, I am positive Marriott has negotiated a lower transaction fee with Expedia.

Expedia does not get commissions from the wholesale rates, but a simple technological CRS transaction fee per reservation.

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