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Hotels Are Losing Billions To Online Travel Agencies Annually


Hotel chains are ramping up marketing campaigns to take control of the online travel-booking market from companies like Expedia Inc. and Priceline Group Inc.

Marriott International Inc., Hilton Worldwide Holdings Inc. and InterContinental Hotels Group are offering guests lower rates and other perks to abandon travel agencies and book directly with the hotel, the Wall Street Journal reports. While travel-booking sites have helped hotel businesses grow in the past, they take a commission of up to 30% per reservation and, according to industry consultant Kalibri Labs, they have cost the U.S. hotel industry up to $4.5B during the 12 months ending last June.

Travel industry research group Phocuswright said online travel agencies facilitated $99B in hotel bookings globally last year, and an Adara Inc. survey said 52% of U.S. travelers between 18 and 34 would rather book through a third-party site than directly with the hotel.