“They've just shifted business that might have come in direct to the hotel or to some other channel,” she [Estes Green from Kalibri Labs] said."
Hilton’s chief marketing officer, Geraldine Calpin, said skirting commissions to travel sites “was not the intent of the strategy,” which she said was more focused on better anticipating and serving guests’ needs. That's easier to do when they book directly through Hilton.
“If you're booking through a third-party site we know less about you,” she said.
Usually, a price discriminator must vertically integrate into the low-priced, elastic portion of the market to prevent arbitrage. Instead, hotels tend to serve the more loyal, high-priced, inelastic portion through their own website. It will be interesting to see how this is resolved.