Good morning from Skift. It’s Tuesday, January 23. Here’s what you need to know about the business of travel today.
04.01.2024 - 22:17 / skift.com / Dennis Schaal / Pranavi Agarwal
After Hopper’s noisy breakups last year with Expedia Group and Booking.com, Hopper has a major hotel chain problem.
If you search the Hopper app for February 2-4 stays in New York City or Chicago, you can scroll screen after screen without seeing a Hilton or Hyatt property.
The first 10 Hopper results in New York City were for Radio Hotel (in the Washington Heights neighborhood, far from midtown); Freehand New York; the Belvedere Hotel; Millennium Downtown New York; Paramount Times Square; Westgate New York Grand Central; LaGuardia Plaza Hotel (in Queens); Hotel 32 32, San Carlos Hotel; and Millennium Premier New York Times Square.
In contrast, if you search Expedia.com for New York City stays on those same dates, there were three Hilton properties and two Marriotts in the top 10.
A similar pattern held for Hopper versus Expedia searches in Chicago for February 2-4.
In July, Expedia stopped supplying hotel inventory to Hopper, and in September Hopper severed its hotel agreement with Booking.com.
That same month, Hopper expanded its relationships with hotel bedbanks HotelBeds and Webbeds, an effort to compensate for the loss of hotel supply. Bedbanks secure wholesale hotel inventory and distribute them to the online and offline travel industry.
One hotel distribution source told Skift that some hotel chains have instructed the two bedbanks not to distribute their inventory to Hopper. HotelBeds and Webbeds declined to comment on the issue, and Hopper didn’t respond to multiple requests for comment.
“Hilton does not have an enterprise agreement with Hopper or provide our hotels’ inventory directly to them,” a Hilton spokesperson said, adding it has never had such an agreement with Hopper.
A Marriott spokesperson said the company had no such block on Hotelbeds or Webbeds distributing its inventory to Hopper. A Hyatt spokesperson declined to comment.
The issue is an important one for any online hotel booking platform, particularly in the U.S., Hopper’s largest market, where hotel chains dominate.
“If major brands chose to suspend their distribution relationships with Hopper, the most direct impact on Hopper would be an immediate reduction of room supply inventory, which in turn could impact customer loyalty, transaction volumes, and their top line,” said Pranavi Agarwal, a senior analyst at Skift Research. “With relationships with major brands souring, this can also impact Hopper’s negotiations with other key players, having a detrimental knock-on effect, ultimately impacting Hopper’s competitiveness of its offering.”
This is not to say that Hopper does not offer hotels from major chains. In Manhattan, for example, we couldn’t find any Hiltons or Hyatts, but lower in the search results, there were
Good morning from Skift. It’s Tuesday, January 23. Here’s what you need to know about the business of travel today.
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