End of road for HotelClub as it integrates with Hotels.com

HotelClub will cease to exist as a standalone brand in the Australian market when the online accommodation retailer merges with Hotels.com on February 15.

PhocusWright analyst Chetan Kapoor told Travel Weekly the writing had been on the wall since Expedia’s acquisition of Orbitz, which reached completion in September last year. Hotelclub had been owned by Orbitz, with Hotels.com part of the Expedia brand portfolio.

“It was certain that with Expedia’s acquisition of Orbitz, HotelClub would be integrated with Hotels.com,” he said. “Both assets share similarities via their focus on loyalty programs and related members-only rates and offers, which can be streamlined.

“Most importantly, consolidation opens up more avenues for hotel distribution in ANZ, and Expedia stands to strongly benefit from supplier negotiations going forward.”

Back in 2013, HotelClub president Nicolas Chu admitted to Travel Weekly that the site had lost relevance over time within the Australian market, where it began. But he had expressed confidence that it had turned things around after years of decline by focusing on loyalty to its customers, shown in the form of exclusive offers which he insisted differentiated it from other players in the arena.

In 2014, it launched HotelClub for agents with the aim of adding an additional distribution channel to its business model by sharing its extensive inventory with the travel trade.

However, despite these efforts, ongoing significant shifts amid the ANZ online landscape have sealed the fate of the brand.

Expedia’s acquisition of Wotif in 2014 was a major milestone for the online sector.

“Sensing opportunity and strained local competition, the two biggest global players – Expedia and Priceline – are bringing their deep pockets and worldwide product slates to the ANZ travel market,” Kapoor commented.

“While we see plenty of discounting and couponing to acquire first-time online travel bookers in markets such as China and India, in matured online markets such as ANZ it is in strategic interest that customers emphasise more on customer retention and work towards building long-term loyalty.”

In a message to its customers, HotelClub described the new changes as “exciting”.

“Within the next few weeks, HotelClub will become part of Hotels.com where an impressive new world of travel benefits awaits,” it said. Any unused member rewards points will be made available for customers to use on Hotels.com from February 15, it confirmed.

Image credit: iStock

Advertise with us

Email the Travel Weekly team at traveldesk@travelweekly.com.au

chetan kapoor expedia hotelclub hotels.com nicolas chu online Orbitz otas phocuswright