According to the local trade press, First Hotels, Nordic Choice and Scandic no longer work with the online travel agency Expedia, following a dispute on booking fees.
The problem rose after a dispute between hotel executive and the OTA both on the fee for cooperation, which typically ranges between 18 and 25 percent of the customer's price, and Expedia requirement for "rate parity", which means that the hotel's rates must be the same as on Hotels.com.According to the local press, over 450 hotels from these chains are no longer listed in the Expedia's portfolio, covering several Scandinavian countries.Danish executive for Scandic Hotels, Jens Mathiesen, explained that simple mathematics lead to the chain's decision. "We could not agree on a new deal, and it is of course about the levels of fees you pay. Further more, we wish to make sure that our customers get the best price on our own website. But Expedia require that they also are able to sell at that price - and for use the equation does not hang together", said Mathiesen. "We want the buyer is guaranteed the best possible price, and they are not, if we are to keep the rate parity. As we must account for the commission to raise prices.""It is difficult for the hotels, because on the one hand, the large exposure across the world allows them to catch some customers, which they would otherwise have difficulty reaching, "he said, adding: "On the other hand, it is not fair that in our own home, where we stand strong, we have to give such high commissions to hit the Danes and other Scandinavians."Scandic explain that they are ready to stand up against the U.S. book giant with both crossed and open arms."We would like to cooperate with them - just not at unreasonable levels," concludes Jens Mathiesen.
Sweden
