Hotels.com and Travelocity split
Hotels.com has terminated its contract with Travelocity.
Hotels.com said it decided to stop selling hotel rooms via Travelocity after the company breached its contract. The complaint was that Travelocity had not maintained exclusivity to Hotels.com.
Hotels.com is owned by InterActiveCorp, which also completed its purchase of online agent Expedia, this summer. The termination of the Travelocity agreement means there will be more cooperation between Hotels.com and Expedia, further increasing speculation about a merger.
Travelocity is now pushing its merchant hotel programmme, which gives it direct access to hotels’ reservation systems in order to sell rooms. It says the programme has now signed up more than 7,000 hotels, which exceeds its year-end goal of 4,000. The growth of inventory was fuelled by increased participation from Carlson Hotels Worldwide, whose brands include Regent International Hotels, Radisson Hotels & Resorts, and Park Plaza Hotels & Resorts.
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