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Back in April, the two companies stated they were working on "an innovative distribution solution that will address challenges in other leisure segments beyond transient retail bookings," to be released somewhere in Q4. The solution is now officially here and, starting from October the 15th, Expedia will, de facto, be the "exclusive global optimized distributor of Marriott's wholesale rates, availability, and content". The news is not surprising, and -if you knew where to look- clues were all over.
That being said, the solution has the potential to -at least- put the proverbial nail in the coffin of the current wholesalers' distribution model, and not only for Marriott. Having a single gateway means better UX for travelers, increased accuracy of hotels features, and (Dulcis In Fundo) up-to-date hotels features and descriptions, a curse for Tour Operators (and unlucky travelers) all over the world. Third-parties, bedbanks, and TOs won't be able to access Marriott's rates directly, but they will have to operate through Expedia (provided they comply with the group's distribution standards), reducing complexity and friction for Marriott, and increasing transactions transparency for the end-users.
OTAS ARE CHANGING SKIN, AGAIN
If anything, the deal is another step to dismantle the (dangerous) "Them vs. Us" mentality that most hotels still maintain towards online travel agencies. On the other side of the table, Expedia's move confirmed that the OTAs' model is definitively shifting towards the B2B's realm and, as I've been saying over and over again for the last five years, I won't be surprised to see Expedia and Booking shapeshift to SaaS companies in the near future. But, as the mighty John Lydon used to say, "I could be wrong, I could be right."
Expedia Group Signs Industry-First Agreement to Become Optimized Distributor of Marriott International Wholesale Rates