There are plenty of ways that online travel agencies influence where guests’ book their hotel rooms. Sites like Expedia present hotels according to internal formulas of customer ratings through the OTA’s own systems. According to the Wall Street Journal, other factors that sway search results include hotels paying larger commissions than others, and the quality of property images provided. The problem comes when OTAs claim to help consumers comparison shop with information that isn’t entirely objective. Given how much OTAs have been outpacing traditional brand distribution channels in terms of bookings, Best Western CEO David Kong sees parity agreements as necessary, though problematic, especially with the 75 percent online market share that Priceline and Expedia currently possess in North America. Although with the changes happening in Europe, Kong suggests taking a more nuanced approach to parity agreements. Read more here.
