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Hotel Cos. fighting back: seek to counter mounting merchant model threat.

Publication: Business Travel News
Publication Date: 28-APR-03
Format: Online - approximately 1230 words
Delivery: Immediate Online Access

Article Excerpt
Seeing a threat to their profitability at the hands of merchant model Internet sites, Hilton Hotels Corp., Carlson Hotels Worldwide and other hoteliers this month moved to regain control of their inventory online, in effect protecting the primacy of rates negotiated with travel buyers. In a related development, merchant model site HoteLeaders.com continued to make inroads into the managed travel arena, this month announcing a deal with travel agency network Radius, whereby Radius agencies will book HoteLeaders inventory.

Hilton this month issued a mandate to all of its owned, managed and franchised hotels, stating that the rates the hotels provide to merchant sites must be consistent with those available through the global distribution systems, Hilton's reservation call centers, the hotels directly, as well as Hilton's own proprietary Web sites.

Meanwhile, Carlson Hotels Worldwide this month became the latest hotel company to sign on with Traveiweb, to which Hilton, Marriott International, Starwood Hotels & Resorts Worldwide, Hyatt Corp. and InterContinental Hotels Group all provide inventory. With the exception of Carison, the hotel companies, along with Pegasus Solutions and Priceline, own Travelweb. As such, the...

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