Marriott, Expedia sign wholesale rate deal

By Jeff Weinstein on 9/18/2019

Marriott International on Tuesday expanded its partnership with Expedia Group Inc. by naming it exclusive distributor effective October 15 of its wholesale rates, availability and content to a huge network of global travel providers. As a result, many redistributors will no longer have direct access to Marriott’s rates and inventory and will have to go through Expedia Partner Solutions.

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“The hotel industry has had a major problem in controlling wholesale inventory. By definition, wholesale rates are intended to be sold as wholesale products which usually means bundled into flights or car or some other element with the hotel rate meant to be rolled into the full package rate,” Cindy Estis Green, co-founder and CEO of revenue strategy consultancy Kalibri Labs, Rockville, Maryland, told HOTELS on Tuesday. “However, some recipients of these rates have gotten the inventory and sold them in a retail setting where they were sold as room only without any bundle. This is not the way this inventory was meant to be distributed and the rates are not offered or designed to be sold alongside room-only rate products.”

Green added that she assumes Marriott was looking for a controlled environment to be sure these rates are offered in the market in the way they were intended. “I am sure others would seek a similar kind of controlled environment to be sure their wholesale rates are not misrepresented by others and sold in ways that were not sanctioned by the owner of the inventory.”

The ability to prevent unauthorized usage of wholesale rates is good for Marriott and all of its constituents, according to Green. “They can have clearer and more logical pricing without random rates popping up that won’t make sense to the consumer. If others do the same and the practice of inappropriate use of wholesale rates is reduced or eliminated, this is good for Marriott to take a leadership position in putting those on notice who abuse their privilege in using hotel inventory in ways that are not sanctioned.”

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