Agent Issues Expedia CEO warns Hilton and Marriott: You're going to take a hit By Jamie Biesiada / March 17, 2016 Share 1 -- Recent efforts by Marriott International and Hilton Worldwide to lure customers to book direct for the lowest rates will hurt those hotel companies, said Expedia Inc. CEO Dara Khosrowshahi. He indicated that Expedia customers will book fewer Hilton and Marriott hotels, and that Expedia has plenty of hotel partners to make up for any loss.“I think that the most significant negative is going to be, to some extent, for the share of Marriott and Hilton owners within the Expedia marketplace,” said Khosrowshahi said during an investor and analyst meeting Wednesday.Starting April 11, Marriott Rewards members who book direct or through “select” corporate travel professionals will get discounted room rates. Marriott has not yet specified which travel professionals qualify.Meanwhile, Hilton recently launched a marketing campaign offering the lowest prices and perks, like free WiFi, to customers who book direct. Hilton extended the perks to traditional travel agents.“These are choices that they can make based on what their needs are and how the market performs,” Khosrowshahi said.Khosrowshahi made his remarks after a question was submitted asking how Marriott and Hilton’s book-direct campaigns would affect Expedia.“The sort order in our marketplace is based on a number of factors. A very important factor is conversion, and what we find consistently is that to the extent that you don’t have the best content and the best price on Expedia or Hotels.com, conversion goes down and sort goes down within a marketplace,” he said.Khosrowshahi added that hotels "aggressively engaging in our marketplace are going to gain share, and the hotels not as aggressively engaging in our marketplace are going to lose share.”Expedia has enough suppliers offering their best prices to meet demand, he said.“We think that we’re going to have plenty of hotel partners that engage very, very aggressively in our marketplace and give us the best prices, the best inventory, with terrific content, and we’re pretty confident of that,” he said.