The deal between Marriott International and Expedia Group which makes the OTA the exclusive global optimised distributor of Marriott’s wholesale rates, availability and content to a network of global travel providers is a clear move by the hotel chain to tighten the leakage of wholesale rates and rate parity on the web.

Whether it will completely stop it is another thing, but this first industry agreement, effective October 15, is a game-changing moment in the OTA-hotel relationship, making it more collaborative than competitive.

It’s certainly a big deal for Expedia Group which has been investing in its platform technology to enable it to be a better partner for its hotel partners. It is also a big deal for Marriott Group to commit to such an arrangement with one OTA partner and shows the magnitude of the problem that can only be solved by scale, tech and a different cooperative mindset.

Comments on social media applaud Marriott for being willing to take the first step towards solving a global, industry-wide problem. With its network of more than 5,700 hotels and 1.1 million rooms in over 110 countries across the globe, Marriott is in the best position to tackle this problem globally.

A media statement says that “with the launch of the optimised distributor model, Marriott is introducing changes to how it approaches the redistribution of the company’s wholesale rates and availability among third-party travel providers. Through this agreement, Marriott will leverage Expedia Group’s industry-leading technology and enterprise-level service to create a single gateway for the redistribution of Marriott’s wholesale inventory.

“The optimised distribution model, provided by Expedia Group’s B2B arm, Expedia Partner Solutions, will eliminate the complexity and inefficiency of today’s wholesale redistribution model for Marriott hotels. This single gateway solution will also provide a consistent and reliable shopping experience for travellers, ensuring accurate display of hotel descriptions, room rates and fees through known and trusted third party travel providers.”

The leakage of wholesale rates onto the web has long been the bane of hoteliers and the problem has been aggravated by the emergence of, and competition among, more OTAs and bed banks – from global brands to regional players and local startups.

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