• Expedia & Travelocity Merger

    Lorna McNamara, Marketing Director

    The recent strategic marketing agreement between two giants of the online travel industry, Expedia and Travelocity, are set to make an already competitive online marketplace even more competitive! For consumers this will mean a loss of competition. For hoteliers looking to manage online revenue, it will mean more competition in an already hyper-competitive online marketplace. More about the merger can be found on the Digital Marketing Works blog.

    Although this is mainly a USA market agreement, there is bound to be wider implications. For hoteliers, the consolidation may make negotiating on rates and terms more difficult with this larger entity. It will also mean that they will have a wider market reach by the combination of the two client databases. With Expedia having already increased their bid levels in the PPC market, going forward it will be a real battle of two giants with Booking.com and the combination of Expedia and Travelocity. This will make things even more costly for individual hotels to generate direct revenue through paid searches.

     

    Friday, August 30, 2013