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Expedia Partners with Red Lion, to Offer Rewards to Clients

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Online travel booking agency Expedia Inc. (EXPE - Free Report) recently announced that it has partnered with Red Lion Hotels Corporation , a hotel chain with a presence in the U.S. and Canada.

As per the terms of the agreement, users booking hotel rooms at Red Lion through Expedia.com or its sister concern Hotels.com will be able to avail the hotel’s member-only rates. Additionally, non-members looking to check into the hotel will be automatically enrolled into the hotel’s Hello Rewards program.

How it Works?

While booking a hotel room in Red Lion through Expedia.com or Hotel.com, the guest is given a choice. They can view the discounted Red Lion member-only rate alongside the non-member rate on the website. Expedia suggests the user to go in for the discounted Red Lion member-only rate, which will automatically make them eligible for the hotel’s loyalty program. Additionally, the user becomes automatically entitled to perks and offers from Expedia.com or Hotels.com.

After a user signs up for a hotel room on Expedia and is found to be a member of Red Lion’s Hello Rewards program, Expedia verifies the details with Red Lion.

Our Take

We note that this is something new for the hospitality industry as online travel booking agencies usually don’t share e-mail information with their partners.  We also note that due to this development, Red Lion will be able to contact users even before they arrive at the hotel, resulting in better management and improved engagement with clients.  

Additionally, Expedia is looking at the deal as a test and may opt out of the partnership at its own discretion. On the other hand, bigger hotel chains such as Marriott and Hilton, in a bid to bypass the commissions to travel agencies, are offering deep discounts to clients who opt to book hotel rooms directly.

Zacks Rank

At present, Expedia has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader technology space are Autobytel Inc. and PetMed Express, Inc. (PETS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).

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