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Amazon vs. Expedia

by Lux Joseph 7. December 2014

When it comes to booking a hotel for your upcoming trip there are many resources out there. Some people utilize their travel agent as they typically are the most knowledgeable and can find the best bargain. For those who choose to look for a hotel on their own they may consider Hotels.com, Expedia, Orbitz, Travelocity, or Hotwire to name a few of the many online travel agencies available to consumers. Out of all of these selections, Expedia is the United State’s online travel agency giant and within its portfolio are Hotels.com and Hotwire.com. Some individuals may say they have a small monopoly on the hotel industry, but will that still be the case in years to come?

Amazon, a company that is known to almost every consumer around the world has over 240 million customers. They started off in the business of selling books online and is now the heart of the economy and has grown to be a retail mega store, a grocery store, a bookseller, an entertainment studio, and even a music provider. Amazon could soon become a distribution channel for hotels. Amazon currently works with a small selection of boutique independent hotels, but their track record shows that it would be no surprise to see them battle up against Expedia.

Many hotel chains are becoming frustrated with Expedia’s power over the industry and a new competitor added to the mix would challenge Expedia’s process and potentially redefine the market. A company like Amazon has the experience and ability to change the direction of buying hotels online. Amazon has already approached several hoteliers about the possibility of Amazon launching a hotel booking service for their clients.

For some of the hotels that are already being sold via Amazon have positive reviews and in an article by Travel Weekly one of the hotels, William’s Grant Inn, stated that after an offer was run on Amazon, they would see an increase of 50-100 calls for accommodations.

Many consumers look for “one stop shop” places. With Amazon’s already diverse selection of business and now the idea of potentially adding a hotel booking engine Amazon is only continuing to “dream big”. Their CEO, Jeff Bezos, has always been a driven individual with an outlook to change the world.

The Amazon Empire could be Expedia’s next big competitor and could also create a shift in how hotels currently do business. A hotelier’s main focus is to fill the rooms. When a hotel’s clock turns midnight any room unfilled is revenue lost. Hotels sell their rooms through a multitude of channels and adding another player to the program will only maximize their place in the marketplace.

If and when Amazon launches a hotel will you book there over one of the other options available? I believe that Amazon’s strong focus on the customer experience may shift how consumer’s shop for their hotel. Furthermore, Amazon is continuously looking at ways to do things different and who knows what that means for the future of hotel shopping.

 


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