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Hotels “lose money” in new Expedia scheme

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Program helps guests pay for stays at front desk

Expedia’s recently launched Traveler Preference Program, which enables guests to pay for hotel stays at the front desk, may cost hotels millions, a new report says. This is because the participating hotels have to pay credit card fees, which had previously been paid by Expedia, as well as higher royalty fees calculated according to the gross revenue from the Expedia room sale and not on the net revenue of Expedia’s commission. The report was prepared by US-based company Hotel Asset Value Enhancement.
However, Expedia said the report’s findings were incorrect, overstating how many guests were likely to pay at the front desk.
Travel Weekly
[pictured: Double-bed guest room, Beijing Huacai Holiday Inn Express]

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