Booking Holdings

Last minute bookings are becoming more-and-more prominent for US travelers. Download Sojern’s 2015 Hotel Insights Report to learn more about how this trend is affecting the travel industry.

What does today's top-notch marketing organization need? A blend of hundreds or thousands of data geeks coupled with legions of creative types who aren't afraid to make big bets. Campaigns need to blend global learnings and local insights. For Booking.com, having the clout to work closely with Google product managers to drive product changes doesn't hurt either.

Expedia's moves to lower commissions, tack on a tactical bidding program for hotel displays, and make itself friendlier to hotels and consumers by offering a pay-at-the-hotel option are all designed to ramp up Expedia's business and to make Booking.com's so-called "competitive moat" a little less imposing.

Big hotel chains like Marriott and Hilton, with their ample marketing and advertising budgets, can scoff all they want about Expedia and Booking.com pay-to play programs for sort-order preference as the chains push direct bookings on their own sites. But small chains and independents will likely use the programs, seeking any small advantage they can wrangle.

Gone are the days when travel brands could rely on English as the lingua franca of independent travelers. As more consumers worldwide embrace digital tools to plan and book trips abroad, brands must offer multiple language options along each stage of the process, or lose ground to OTAs.

Imagine if Expedia and Priceline saw selling flights as an increasingly important part of their business and started offering airline IT solutions. That's what they and Trivago are essentially doing on the hotel side of the ledger, embedding themselves as hotel-technology providers. Now it has become a downright trend.

Expedia's acquisitions versus the Priceline Group's "competitive moat." Rock, paper, scissors. It's an interesting contest and in the $1.4 trillion global travel market, both companies can be winners. Expedia is trending upward and Priceline is showing strong growth, as well.

The argument of Priceline Group CEO Darren Huston is that chains are shooting themselves in the foot -- and their properties aren't happy -- when the chains offer lower rates on their own websites because then their listings on Booking.com won't convert as well as they should. But as Huston says in a different context, perhaps the hotels would reply that they are "playing the long game."

Advertising such as bidding programs can be a higher margin business than transactions for online travel agencies. It looks like Expedia, at least, wants to get involved in that bidding revenue that Google and metasearch players have generated for years.

Priceline wants to get into your social feed, and it's using humor to ease its way in.