OTA & Travel Distribution Update – Dec. 30th, 2016

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My final client OTA & Travel Distribution Update for 2016 is below. It has been a quite week in the world of distribution. Here’s to a 2017 filled with much success and happiness. Happy New Year.

  • Loyalists More Likely to Use Airbnb [SHORT-TERM RENTALS]. According to a December 22 report issued by Morgan Stanley, hotel loyalty program members are the most frequent users of Airbnb. Apparently, this phenomenon remains true even if you consider the fact that Airbnb users are likely to be those that travel most frequently. Just imagine what might happen if Airbnb created an effective loyalty program . . .
  • Priceline Is About to Lose Its First-Mover Advantage [OTA/METASEARCH]. No big surprise here. With Expedia’s recent announcement that it was joining TripAdvisor’s Instant Booking platform, Priceline (the first and until now, only, OTA to use the platform) is about to lose the first-mover advantage it previously enjoyed. Expedia’s announcement is likely good news for both Expedia and TripAdvisor and may finally provide TripAdvisor the critical mass it needs to make Instant Booking a success.

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The failure of hotel loyalty programs to defend against Airbnb, quantified | qz.com
If hotels are counting on loyalty programs to keep their best customers away from Airbnb, they might want to come up with a Plan B. Members of hotel loyalty programs are more likely than other travelers to have booked a stay in Airbnb.
Quartz on Dec 28, 2016

How Could Expedia’s Instant Booking Partnership Affect Priceline?
Priceline (PCLN) was the first OTA (online travel agent) to become part of TripAdvisor’s Instant Booking platform, joining it in late 2015. The Priceline partnership was an important step in the Instant Booking platform’s success.
Yahoo! Finance Lodging News on Dec 27, 2016

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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