TripAdvisor and Marriott Expand Booking Partnership

TripAdvisor’s stock spiked this week after the travel website company announced a strategic partnership with Marriott International Inc., that will enable users to book Marriott hotel rooms through its Instant Booking platform starting later this summer.

The new agreement adds Marriott’s 4,200 hotels in 80 countries to travel company’s existing room inventory from Best Western, Accor and Choice Hotels.

“TripAdvisor has created a new distribution model that changes the game in the travel industry by addressing key concerns of hotel suppliers,” said Shafiq Khan, senior vice president of channel strategy and distribution at Marriott International Inc.

In a statement, Kahn said the deal with TripAdvisor will allow Marriott to better control displayed rates and inventory. Customers who book through the travel website will not be eligible for Marriott Rewards points.

TripAdvisor’s emergence as an online travel agency could potentially drive business away from OTA heavyweights such as Expedia and Priceline, who demand higher commissions that average between 15 to 20 percent.

The Newton, Massachusetts-based company first launched its Instant Booking platform in June 2014. A gradual roll-out to international markets is expected over time.

Travelers can book rooms by clicking on a “Book on TripAdvisor” button to make a reservation. Throughout the process, the website directs travelers to contact the hotel for all customer support inquiries.

Bloomberg reported that TripAdvisor’s shares climbed by 15 percent to close at $87.65—the highest jump in four months. TripAdvisor’s net income increased 10 percent last year to $226 million. The company’s sales rose 32 percent to $1.25 billion. Marriott’s shares increased less than 1 percent to close at $77.02.

TripAdvisor is one of the largest travel websites that provides planning features and booking tools for travel. Its branded websites pull in 340 million monthly visitors and offer more than 225 million reviews for almost 5 million accommodations, restaurants and attractions in 45 countries.

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