Hilton Scores a Victory Over Online Booking Sites, and What It

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Hilton Scores a Victory Over Online Booking Sites, and What It Means for How Travel Will Be Booked

by Gary Leff on December 1, 2015

United Airlines used to offer last minute e-fares on their website, but stopped because they ran afoul of agreements with computer reservation systems to always display the best available fares through those sites.

Paying the computer reservation systems is costly, it s cheaper when airlines sell to you directly, so they used to offer bonus miles for doing so. And paying the online travel agencies is costlier still. Even though few airlines base commissions any longer (although Alitalia just re-introduced 1% commissions in Italy) they do pay based on volume.

Airlines have long paid less to the online travel sites than hotels. So hotels have gone to greater lengths than airlines in trying to get customers to book direct. Generally when you book on Expedia you still earn frequent flyer miles for your flights, and are eligible for elite status accrual and elite benefits. (Although it may not always be as clear what restrictions apply to the fares you re buying.)

Hotels on the other hand have:

  • Restricted points-earning (Hilton s official policy is no points at all, even for incidentals during your stay, when booking through a third party)
  • Restricted status-earning (major chains won t let your stay booked through most third parties count towards gaining or retaining status)

  • Restricted elite status benefits (Though Hyatt and Marriott generally honor elite status on third party bookings, other major chains do not)
  • During periods with hotel occupancy low, the OTAs had the greatest leverage. The major chain hotels were paying over 20% commissions, perhaps 25%, and independent hotels easily paid 40%.

    But those commissions have been falling. With hotels full they have a stronger bargaining hand. They re able to pay lower commissions, and negotiate other favorable terms.

    Hilton reports that it has successfully concluded better deals.

    [Hilton CEO Chris] Nassetta said Hilton Worldwide won the right to lower the commissions it pays to online travel agencies such as Expedia and Booking.com.

    Hilton Worldwide managed to eliminate last-room availability clauses and won the right to offer preferential pricing — lower rates than it gives to online travel agencies — to certain members of the hotel chain’s loyalty program, Nassetta said.

    “We are done with all of our OTA negotiations, and we achieved our goals in every one of those pillars,” Nassetta said.

    This likely explains Hilton testing discounts for HHonors members since they don t have to offer those same rates through online booking sites and can use those to incentive lower direct booking expenses.

    Airlines, too, continually squabble with the online sites and computer reservation systems over how their fares are distributed. Lufthansa is currently imposing an extra charge for tickets through these systems, which makes them less competitive. It s hard to sort out the effect it has had on the airline, because their sales have also been affected by strikes. Airlines want online travel sites to work through their own, less expensive, direct channels. And they want everyone selling their ancillary products, at the lowest cost to the carrier.

    When we see Expedia buy Orbitz after buying Travelocity we shouldn t just think of them as making consumer unfriendly moves, we should think of them as:

    1. Trying to preserve some of their leverage against travel providers who are eroding their margins.
  • Making defensive moves in anticipation of Google disrupting their business model.
  • That isn t to say that consolidation in the online booking industry is consumer-friendly. And consumer experiences vary. But online travel agency sites are hardly gaining market power .

    More From View from the Wing





    06/11/2017

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    Sabrina Carpenter News and Photos #celebrity #gossip, #hollywood #gossip, #juicy #celebrity


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    Sabrina Carpenter News Archive

    Good news, everyone!

    Sorry, wrong show but the sentiment remains: There may be hope for a Girl Meets World renewal after all!

    As you’ve probably heard by now, Disney Channel fans were outraged last week when the House of Mouse officially canceled the Boy Meets World spinoff after three seasons.

    Video: Selena Gomez Wishes For A Wizards Of Waverly Place Reunion!

    Sure, there are still two episodes of the Sabrina Carpenter and Rowan Blanchard sitcom left an episode TONIGHT as well as next week’s series (?) finale but creator Michael Jacobs seems pretty optimistic about eventually getting even more episodes !

    In fact, he’s apparently already in talks with Netflix for a potential Season 4 revival.

    The GMW showrunner sat down with TV Line on Thursday for an interview all about the future of his beloved series. saying:

    Girl Meets World Is OFFICIALLY Canceled Read The Cast’s Emotional Reactions!

    Over the past week, Girl Meets World fans have been pulled along on an emotional rollercoaster over whether or not the sitcom would be renewed for another season.

    A few days after Rider Strong sparked rumors of the show’s cancelation. the Disney Channel series’ writers officially revealed the Boy Meets World spin-off would be meeting its end later this month!

    Related: That’s So Raven Star Orlando Brown Leaked His Own Sex Tape!

    In a series of posts on Twitter . the writers made the sad announcement on Wednesday, writing:

    Girl Meets World Might Not Be Over After All See The Writers’ Response To Rider Strong’s ‘Confirmation’!

    This makes a world of difference!

    Girl Meets World fans got some bad news this week when original bad boy Rider Strong strongly suggested the show was ending after next month’s third season finale.

    However, we’re happy to report the sky may not have fallen on the Sabrina Carpenter and Rowan Blanchard sitcom just yet because according to the writers, Season Four is still a possibility !

    Related: Meet Raven-Symoné’s Kids From The That’s So Raven Spinoff

    While we were aware Disney Channel didn’t officially cancel the Boy Meets World spinoff in lieu of Uncle Shawn’s announcement, the GMW writers’ room flat out refuted Rider’s claims on Twitter Thursday afternoon, tweeting:

    Donald Trump actually tweeted something nice for a change on Monday — and even that is mired in controversy thanks to literally everything else he’s done.

    In case you haven’t followed the story of U.K. infant Charlie Gard. the 10-month-old suffers from a rare genetic disorder called mitochondrial depletion syndrome that keeps him from breathing and moving on his own. He’s currently being kept alive by machines.

    But doctors say there’s nothing they can do to fix his declining condition, and that turning off the machines is the merciful thing to do as Charlie will only suffer more. And the courts agree.

    Related: Trump Tweets An Outrageous Video Literally Bashing The Press

    His parents have been fighting, but last week the European Court Of Human Rights upheld a lower court ruling that “it was likely that Charlie would suffer significant harm if his present suffering was prolonged without any realistic prospect of improvement, and the experimental therapy would be of no effective benefit.”

    It’s a heartbreaking case. Even the Pope weighed in, saying he prays Charlie will be treated “until the end” per the parents’ wishes.

    Charlie’s parents, Chris Gard and Connie Yates. set up a GoFundMe to pay for an experimental treatment in the U.S. — one which Connie says has never been tried on his particular gene but has helped with a similar syndrome. So far they’ve raised an astounding $1.7 million.

    That’s where Donald Trump comes in. He tweeted on behalf of the U.S.


    09/09/2017

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