The American Hotel & Lodging Association (AH&LA)
said Thursday that it opposes Expedia Inc.’s pending acquisition of Orbitz
Worldwide.
“This transaction and the resulting consolidation of the
online travel marketplace will result in significant negative consequences,
particularly for consumers, but also for the large number of our members who
are small business owners and franchised properties,” AH&LA CEO Katherine
Lugar said in a statement.
Lugar said that hotels on average pay Expedia 11% higher
commissions for hotel bookings than they pay Orbitz, and that Expedia Inc. and
Priceline Group would account for more than 95% of bookings by online travel
agencies if the Orbitz acquisition happens.
Expedia and Orbitz announced the proposed $1.34 billion
acquisition in February. The U.S. Department of Justice is reviewing the
proposed buyout.