Hotel Group Urges DOJ to Block Expedia-Orbitz deal

The American Hotel & Lodging Association (AH&LA) said Expedia’s acquisition of Orbitz would result in “significant negative consequences, particularly for consumers, but also for the large number of our members who are small-business owners” The association urged the Department of Justice (DOJ) to deny the move.

If the acquisition goes forward, Expedia would control nearly 75% of the U.S. online travel agency business, it said. Expedia owns Travelocity, Hotels.com, Hotwire and Trivago. Orbitz owns Cheap Tickets. In a statement, AH&LA chief executive officer Katherine Lugar said hotels typical pay 11% higher commissions to Expedia than to Orbitz. The acquisition would create a duopoly, with Expedia and Priceline controlling more than 95% of OTA bookings in the U.S.

— Michele McDonald