Expedia

Orbitz Improves Its Hotel Search – Is It Enough?

by RobertKCole on August 10, 2010

The Orbitz press release boldly announced “Orbitz Launches Groundbreaking Hotel Search Experience with Industry-Leading Property Comparison Features.”

It's New and Improved, but What Is It?
Creative Commons License photo credit: Erik Charlton

The Orbitz hotel user interface may be new and improved, but is it enough of a dramatic step forward to catch the attention of travel shoppers?

Wow, sign me up! Nothing grabs my attention better in online travel than a big leap forward for hotel search innovation.

In reality, calling the enhancements “groundbreaking” or “industry-leading” is a stretch. These changes are incremental, mostly derivative and unfortunately not significantly innovative.

Not to denigrate this big step forward for Orbitz, but given the hyperbolic claims of the press release, I was expecting changes that would dramatically surpass the current hotel search paradigms.

Orbitz has definitely provided a more Kayak-like experience, with some improvements like including user ratings when mousing over a property on a map, but in many cases, Kayak still offers better functionality.

What was added?

  • Google Maps, including street-view
  • Location, hotel classification, customer review score, amenity and brand filters

What was removed?

  • Hotel neighborhood / star classification matrix

Orbitz’ attempt to translate the airline carrier/number of stops matrix display to a hotel star rating/neighborhood format never really resonated with users due its inability to categorize and differentiate a hotel product that is much less commoditized than air travel. continue reading →

Tagged as: Expedia, hotel, innovation, Kayak, online travel companies, Orbitz, Priceline, search, travel, travel search, Travelocity, user interface

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Hotwire Expands Menu – Adds Bed Choice

by RobertKCole on July 20, 2010

Searching for a New York City hotel, I discovered Hotwire testing a new feature: Bed Choice. Sensing it might be a bucket test, I grabbed a couple screenshots.

Interesting Menu
Creative Commons License photo credit: Wm Jas

The expanding menu of options provided by Hotwire is revealing more details about the hotel to travelers. Will hotels be able to translate this into larger and more nourishing meals?

This is a brilliant move by Hotwire, as it should simultaneously attract new prospects, improve conversion, and further increase its differentiation from Priceline.

By introducing Bed Choice, Hotwire not only expands its appeal to attract new customers that might still have concerns regarding opaque product purchases, but also improves the conversion potential of current Hotwire users when confirming the bed type is important.

Most importantly, it also provides a critically important new capability for hotels – the ability to upsell.

Screenshots

Hotwire’s new Bed Choice feature appears in the search results page, with an icon prominently displayed next to the hotel feature icons. The icon functions similarly to the other feature options. Hovering over the icon provides a description of the Bed Choice feature, but does not present the options or pricing.

The Hotwire results page now includes tiles highlighting hotels that offer a choice of bedding:
Hotwire helps hotels further differentiate by offering bed choice
continue reading →

Tagged as: Expedia, hospitality, hotel, Hotwire, marketing, online travel companies, Priceline, travel

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Bathing in the Hotel Merchant Tax Quagmire

by RobertKCole on December 22, 2009

There is no economic recession when it comes to courts litigating hotel merchant tax cases between various local tax jurisdictions and the online travel agencies. With an estimated seventy cases at various stages of the process, legal teams representing both sides appear to have guaranteed job security into the foreseeable future.

Quicksand
Creative Commons License photo credit: publicenergy

As municipalities, courts, states, online travel agencies, hotels, lobbyists and lawyers on contingency continue battling, it seems the more they struggle, the deeper they sink

The fundamental issue is whether Online Travel Agencies (OTAs) should be held responsible for collecting hotel occupancy taxes on a) the retail price charged to consumers, or b) on the net wholesale rate paid to the hotel – the current practice. Simply put, the question for juries across the land is if the OTA’s should be paying room tax on markups that are embedded in the quoted room rate.

This topic has been simmering for years, initially with several cases dismissed by courts asking the tax authorities to exhaust administrative remedies. Earlier this year, a couple smaller jurisdictions won victories over the OTAs, but more recently, the tide has turned against the OTAs, with several high profile cases decided in favor of the local municipalities. It is very important to note that the vast majority of these verdicts are under appeal by the OTAs.

Instead of becoming more straightforward as the cases progressively create precedents, verdicts are creating more confusion. New jurisdictions are electing to litigate, while others are choosing to rewrite their tax codes. Smaller markets like Columbus, Georgia have been boycotted by OTAs following court victories, but the same has not held true in larger destinations like Anaheim. A Washington State consumer class action targeted Expedia, adding a new front for the OTAs to defend (Priceline is also currently named in two consumer class actions.) New York City decided to make package booking margins taxable as well. Despite all the activity, there has been no advancement in technical standards or operational process improvements that simplify the identification, recording or remittance of hotel merchant taxes. It seems all parties are in some form of denial regarding the long term impact of changes to the hotel tax environment. continue reading →

Tagged as: Expedia, hotel, hotel tax, online travel companies, Orbitz, Priceline, Travelocity

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Freedom of Choice in Expedia Contract Negotiations?

by RobertKCole on October 19, 2009

Contract negotiations between Choice Hotels International and Expedia have reportedly broken down, with the Choice brands being removed from Expedia controlled websites. Max Starkov of Hospitality eBusiness Strategies authored a recent blog post on the topic, describing the hotel industry’s relationship with the Online Travel Agencies as an example of the “Stockholm Syndrome” when the kidnapped victims (hoteliers) fall in love with their kidnapper (OTAs.)

Can Equilibrium Be Found Between Expedia & Choice Hotels?
Creative Commons License photo credit: Brymo

Choice Hotels Franchisees, looking for business during an economic downturn, may need to weigh brand allegiance against online sales

As opposed to a hostage situation, the hotel industry and the online travel agencies need to realize that each plays an important role in business mix of the other. Attractive hotel margins are available for OTAs while still providing consumer value, and without hotels jeopardizing operating profitability. However, as the pendulum of negotiating power swings to favor the OTAs, hotel brands will need to maintain discipline to maintain equilibrium on terms that are mutually beneficial.

In many ways, the situation with Choice looks similar to the contentious Expedia – InterContinental Hotels negotiations of 5 years ago.

In 2004, Expedia tested the mettle of InterContinental franchisees and the control of its hotel brands by asking the question “What is more important to a hotel, its Brand, or Expedia?”

Jim Young of InterContinental was miraculously able to gain alignment with corporate management and the franchise groups to ensure uniform rate and distribution integrity across the InterContinental portfolio. As a result, InterContinental made the strategic decision to sacrifice as much as 30% of its online sales volume and terminate its distribution relationship with Expedia. continue reading →

Tagged as: Choice Hotels, Expedia, hotel, recession, travel

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Why Google Will Radically Democratize Online Travel

by RobertKCole on August 7, 2009

Google has almost unlimited options when it comes to its future travel strategy.  In addition to its huge search traffic and expansive advertising network, Google also possesses an impressive arsenal of technologies that promise not only to change how consumers research and book travel, but how they will interact with their destination once they arrive.

Will Google Labs Cook Up Some Revolutionary New Travel Tools?

Will Google Labs Cook Up Some Revolutionary New Travel Tools?

Given Google’s massive traffic and advertising reach, it is no wonder Kayak CEO Steve Hafner was recently quoted in Dennis Schaal’s blog, “Google is by far the biggest source of travel information for consumers.”  This statement got a lot of people’s attention.  Dennis’ follow-up post included a quote from Google’s managing director of travel, Rob Torres, stating “We are not going to copycat. We will only do something if we can do it 10 times better than what’s happening today.”  I’m not sure if that helped to calm the fears or feed the terror…

So let’s put this in perspective.  In Angry Online Travelers Consider Abandoning The Web, Forrester’s Henry Harteveldt blogged “travelers are so angry with poor online travel experiences they’re approaching a breaking point.”  A clearly defined need exists.

Google’s mission statement is: “to organize the world’s information and make it universally accessible and useful.” Organizing travel information aligns perfectly with Google’s mission. continue reading →

Tagged as: Expedia, Forrester, Google, innovation, Kayak, online travel companies

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Online Travel Companies in Hotel Tax Squeeze Play

by RobertKCole on June 2, 2009

A recent King County summary judgment against Expedia (NASDAQ:EXPE), reportedly the largest consumer class action suit in Washington State history, creates a new front in the growing litigation battles facing the Online Travel Companies (OTC’s).  Expedia competitors Priceline (NASDAQ:PCLN), Orbitz (NYSE:OWW), and privately held Sabre’s Travelocity potentially risk facing similar claims, although their exposure is somewhat limited relative to Expedia due to lower hotel sales volume and merchant model transaction ratios.

Online Travel Companies getting squeezed by cities and consumer class action suits
Creative Commons License photo credit: capsicina

Cities, and now consumers, look to squeeze Online Travel Companies for hotel merchant taxes

The King County judgment is significantly different from earlier claims targeting the Online Travel Companies.  High profile cases, such as the claim filed by the City of Anaheim, focused on the local taxing jurisdictions attempting to secure the hotel merchant tax differential from the OTC’s.  In the Washington State case however, the plaintiffs seek compensation to consumers for the hotel merchant tax differential.  The suit fundamentally alleges that the tax was collected on a retail basis from consumers, but remitted on a wholesale basis to the hotel (and then passed through to local jurisdictions.)  In short, the suit claims the tax amount paid by consumers was overstated by Expedia and the difference should be refunded.  Expedia is refuting these claims and appealing the ruling. continue reading →

Tagged as: Expedia, hotel, hotel tax, online travel companies, Orbitz, Priceline, Travelocity

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Online Travel Companies and Travel Technology Innovation

May 5, 2009

Online travel companies Expedia, Travelocity, Orbitz and Priceline have grown substantially through acquisition of small entrepreneurial organizations that have created innovative online travel technologies. Critics say that the online travel industry reached a functionality plateau and the online travel companies have difficulty with organic innovation. The root cause may be due to the trade-offs involved when managing for quarterly profits and investing in R&D for longer term success.

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Google Acquire Expedia? An Unfounded Rumor

April 19, 2009

Rumors circulating that Google has an interest in purchasing Expedia surface periodically – it now seems on an annual basis… All indications are that a purchase of Expedia would not only signal a dramatic change in Google’s strategic direction, but also jeopardize its considerable advertising revenue from travel suppliers and distributors.

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