InterContinental Hotels Group, whose brands
include Holiday Inn and Crowne Plaza, will be available on Expedia
for the first time since IHG broke off the relationship in 2004.
IHG signed a
multiyear deal with Expedia that will eventually have all IHG
hotels available on Expedia.com as well as on Hotels.com. IHG hotels
have been available on Hotwire, another Expedia brand.
IHG had stopped
working with Expedia in 2004 over several issues including
transparency; it claimed that Expedia was not making clear the fees
and other charges consumers would have to pay when booking hotels.
The issues arose at a time when hotel companies and online travel
sellers were battling for viewers at a time of rapid Internet
growth. Dara Khosrowshahi, interviewed at the PhoCusWright
conference, said those issues had been resolved through
As part of the
agreement, IHG will become the launch partner for a new Expedia
pricing model. The two-part model will blend transaction pricing
with media pricing based on clicks on specific IHG properties in
Expedia and Hotels.com search results. Expedia and IHG claim it is
a first in online travel, where "IHG will receive significant
benefits from value-added media placement throughout the Expedia
network in addition to the bookings they receive from
Expedia would be paid for providing IHG properties with "exposure,"
such as when browsers tour a hotel on Expedia, even if they don't
book on Expedia. He said this model might be expanded to other
partners if there is demand.
contact reporter Harvey Chipkin, send e-mail to [email protected].