by Donald Wood
Last updated: 12:55 AM ET, Tue May 9, 2017
Hotels in the United States are reportedly increasing their attacks against Expedia Inc. and Priceline Group Inc., hoping to convince President Donald Trump, his administration and other government officials that the travel companies are monopolizing the industry.
According to documents acquired by Bloomberg.com, the American Hotel & Lodging Association is planning a campaign against Expedia and Priceline due to the perceived unfair practices. The association is made up of hotel industry giants Marriott International Inc., Hyatt Hotels Corp. and Hilton Worldwide Holdings Inc.
Documents reportedly obtained from the group's meetings reveal the campaign includes trying to lobby the Federal Trade Commission and the Trump Administration over the fact the two companies also own other websites like Booking.com, Hotwire.com, Kayak.com and Travelocity.
"We have publicly opposed such consolidation with the Justice Department and outlined how the Expedia and Priceline duopoly hurts consumer choice and the small businesses in our industry, which represent some 60 percent of all the hotels in the U.S., who are struggling to compete as a result of the gouging commission rates charged by the [online travel agencies]," the American Hotel & Lodging Association said in a statement.
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Some of the tension could stem from Expedia and Priceline charging hotels a commission of between 10 percent and 20 percent, which is more than airlines pay to be on the same websites.
The tension could also stem from the market caps of these companies, with Priceline valued at $94 billion as compared to Marriott at $37 billion.
A spokesperson for Expedia told Bloomberg.com that the company plays only a small role in the travel industry, and a Priceline representative said hotels don't have to list their available rooms on the website, but choose to do so to increase business.
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