Financial Times FT.com

Online agencies in room dilemma

By Amy Yee

Published: August 21 2004 05:00 | Last updated: August 21 2004 05:00

An aggressive move by InterContinental Hotels (IHG) this week to pull its 3,500 hotels from Expedia and hotels.com reflects the changing landscape of the travel industry as online agencies face pressure to become friendlier to the hotel companies that supply them with rooms.

No other big hotel chain has yet followed IHG's move to pull inventory from the two websites, both part of InterActiveCorporation, Barry Diller's internet empire. IHG said Expedia and hotels.com would not comply with business guidelines it issued this spring.

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