According to a recent Travel Weekly article, hotels are becoming more and more frustrated with the perceived power that the Expedia group has, a statement that leads some industry analysts to predict that Amazon could change the hotel distribution game.
Skift, a leading travel news outlet, recently broke the news that Amazon has been in discussions with independent hotels to offer online bookings through a new travel site, expected to be released in early 2015. Although initial reactions have been mixed with regard to the move, two analysts are claiming that the internet giant could be a game changer.
“Hotels would like to see other players come in and potentially challenge or even disrupt Expedia,” said Henry Harteveldt of Atmosphere Research Group. Amazon, analysts said, could meet that challenge as well as provide a new way of selling hotels.
“I think Amazon has the power to redefine the market,” said Bob Offutt, senior technology analyst with PhocusWright, who called the online retail giant’s rumored entry into the travel marketplace “exciting”.
“A lot of people are trying to improve the shopping experience, but nobody has done a really good job,” Offutt said. The senior technology analyst also said that such a move would make sense since Amazon’s marketing clout derives from the way it has mastered putting forth offers that interest like-minded people.
“That power of suggestion helps to narrow down the incredibly large choices of places and things to do,” said Offutt.
To read feedback from property owners that Travel Weekly had an opportunity to interview, click here.
To read the most recent Skift article that takes a first look at Amazon Travel’s new hotel contract, click here.