How Expedia is reinventing hotel booking -- and upsetting the industry

Expedia is revolutionizing the way you'll book hotels, and Hilton, Marriott, La Quinta and Barcelo Hotels are early adopters of the plan. A new Expedia Traveler Preference program, which has been tested and could soon be rolled out globally, enables travelers booking rooms at participating hotels to decide whether they want to pre-pay for the room or pay at the hotel. Until now, online travel agencies have given guests one option on how to book each property: either pre-pay for the room, using the merchant model, or pay at the hotel, a bow to the commission or agency model. OTAs generally make more money per booking using the merchant model, but the agency model can drive huge volumes because it is much simpler for hotels. Expedia and Hotels.com pioneered the merchant model, which s