Expedia charges hotels 15% to 20% of a room rate in booking fees, Cowen analyst Kevin Kopelman said. But hotels have online travel agencies such as Expedia and Priceline (PCLN) to thank for about 10% of their bookings.
The tension between online travel agencies and hotels has been stirring for quite some time, Kopelman said, due in large part to a recent increase in agencies' market share.
Hyatt told its hotel owners they'll have to pay an increased ownership fee to fund an expanded loyalty program that offers discounts to customers who book directly with the hotel.
What's Hot on TheStreet
Snap is bleeding value: Snap Inc. (SNAP) fell nearly 5% by the close of trading on Wall Street Thursday, but never dipped below the $17 price that shares were sold at on March 2, when the company debuted on the Nasdaq with a $3.4 billion IPO. By the end of that first trading day, with shares rising more than 44%, Snap was valued at just under $33 billion.
Investors have questioned the relevance of the company's Snapchat app in a market dominated by messaging services such as Facebook's (FB) WhatsApp and the business-focused Slack Technologies. Wall Street has also raised questions about its ability to monetize the billions of messages it handles each day.