Marriott Signs Global Distribution Agreement with TripAdvisor to Participate in Instant Booking
As announced earlier this morning, Marriott has entered into an agreement to expand our partnership with TripAdvisor by adding Marriott-branded hotel inventory to the TripAdvisor “Instant Booking” platform.
TripAdvisor’s Instant Booking option allows customers to complete the hotel booking process within TripAdvisor’s mobile app and site instead of linking them to Marriott.com or other channels. Marriott will continue to participate in TripAdvisor’s Business Listings, Check Rates (Meta) and Professional Photos Ad Placements via the Referral Partner Program.
TripAdvisor has created a new distribution model that changes the game in the industry by addressing Marriott’s and hotel owners’ key distribution concerns. Marriott’s distribution strategy is to differentiate direct channels, own the customer relationship and the stay experience, leverage indirect channels for new customer acquisition, increase onward distribution control, and lower costs for our hotels and owners.
Key advantages of the Instant Booking relationship include:
- Travel agency commission level
- Marriott obtains customer data ownership
- Full control where rates and inventory are displayed for hotels in the Marriott portfolio (i.e., onward distribution control)
- No parity required with Marriott’s Direct Channels
- Shift bookings from OTAs to Marriott’s reservation engine
Additionally, we know that many hotels in the Marriott portfolio are already being sold through Instant Booking, but through third-party channels and on terms that are not as favorable. We believe launching Marriott-branded hotels on this platform provides an opportunity to establish a better model that aligns with the principles of our Distribution Strategy. However, any hotel that does not wish to participate will be provided an opportunity to opt out via an upcoming Weekly Update.
For additional details, review the Instant Booking Memo/FAQs, which will be communicated to hotels via the June 22 Weekly Update, on MGS. Should you have any additional questions about this partnership or Marriott’s overall distribution strategy, please let us know.