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Posted Under : Travel Networks

  • Posted by :Thomas
  • Date : Aug 19, 2015

The world’s two largest OTAs are boosting spending on marketing while hotel lobbyists are calling for federal regulators to stop the proposed merger of two of the most popular OTAs in the U.S., reflecting a heightened battle between suppliers and intermediaries for a greater share of travel spending. Expedia Inc. and Priceline Group each ratcheted up second-quarter marketing costs.

expedia_priceline

Expedia did so as it made preparations for its pending acquisition of smaller competitor Orbitz Worldwide, a deal that is still being reviewed by the Justice Department. Orbitz also recorded higher second-quarter costs. A combined Expedia-Orbitz would control almost three-quarters of the U.S. online market, while the AH&LA estimated that Expedia, Orbitz and Priceline combines account for more than 95% of the OTA market.