Dive Brief:

• Expedia Group is offering its hotel partners attribute-based shopping, which unbundles existing hotel rate plans to create à la carte options for travelers. 
• According to Expedia Group Senior Vice President Hari Nair, early results from hoteliers using Expedia’s ABS technology show a 4.1% shift to more premium rooms and rates as well as increases in conversion when the ABS layout is shown to the traveler.
• Expedia is one of the first major online travel agencies to introduce ABS at scale, meeting a desire for the model from consumers. 

Dive Insight:

Travelers — historically confined to rate plans that bundle all room costs and extras (think breakfast, parking and Wi-Fi) under one price point — say they not only want more flexibility in customizing their hotel packages, but they’re also willing to pay for it. 

According to a 2021 Stayntouch and New York University SPS Tisch Center of Hospitality report, 46% of travelers are willing to pay more for preferred room attributes. Further, 68% of respondents believe an ABS model would provide clarity when booking a hotel, while travelers also say ABS would improve price transparency (24%), clarity of room descriptions (21%) and guest-room customization (20%).

For hotels, in addition to improving price transparency and customization for travelers, ABS has the potential to increase upsells and conversions, as evidenced by Expedia’s early results. 

Though the ABS concept has been bandied about in the industry for some time now, Expedia is among the first major online players to roll out the technology at scale. 

“This is only the beginning for ABS at Expedia Group,” said Nair. “This technology lays the foundation to unlock a wide range of new revenue opportunities as we continue to modernize the way travelers shop for hotels.”