A Wolf in Sheep's Clothing or Real Help? - Expedia just launched a partner recovery program, in which to participate, hotels need to provide Expedia with a.) their lowest retail rates and b.) competitive pricing on things like holiday packages and c.) member only deals. If a property opts-in,

* Expedia will turn 25% of the commission it earned from the property in 2019 into marketing credits, which then the property can use to promote itself on Expedia: Expedia travel listings, banner advertising, etc.

* Expedia will also reduce its commission by 10% for 3 months and extend payment terms for Hotel Collect bookings by 90 days.

* Wholesale rate distribution - Hotel partners can now more effectively add wholesale rates into Expedia Partner Solutions, designed to favorably position inventory across Expedia's network of airlines, loyalty & membership organizations, financial institutions, and offline travel agencies

* Market insights - Introducing data dashboard providing trends on website traffic, stay dates, and demand source markets. This is now live and complimentary to all partners using Expedia.

* Properties can also highlight hygiene measures such as contactless check-in, cleaning measures, social distancing plans.

The question is: Is the new Expedia Partner Recovery Program a good thing for hoteliers or will further deepen the hoteliers' dependency on this OTA?

Frederic Gonzalo
Frederic Gonzalo
Travel & Hospitality expert. Digital Marketing & Strategy Speaker and Consultant

Is this program genuine help for hoteliers? I can't see why not. I was consulting this week with three different clients: a small inn, a motel, and a boutique hotel. The small inn has virtually no online presence, despite a decent website and a Facebook page they have a hard time maintaining. For them, this program is awesome and they intend to use it and abuse it to maximize revenues and lower costs - especially with the lower commission, three-month-long offer.

For the motel, they see this program as an interesting opportunity but won't be fooled. They know they can sell out during peak season in July and August without the help (and commission fees) of OTAs like Expedia and Booking. They contemplate embarking on the program in the Fall when reservations might need some extra push.

Then there's the boutique hotel. They see Expedia and Booking like necessary evils, but would much rather do without them. To them, this program has many catch-22 attached to it, as they don't want to give OTA their best rates and conditions. Plus, they fear this will increase their already-high dependency on this distribution channel.

This program can certainly help some hoteliers, while others won't be bothered. Thus, depending on your point of view, Expedia will be a wolf in sheep's clothing AND real help. Both aren't mutually exclusive!

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