Agoda vs Trivago: Tension between OTAs and metasearch

Over the course of the past week or two, Agoda has been gradually pulling its entire inventory of accommodation from Trivago and confirmed it plans to spend its money elsewhere until at least the end of this year.

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The reasons for making such a dramatic move appear to have centred on what Agoda sees as a lack of flexibility from Trivago.

Agoda CEO Robert Rosenstein sayd:

“We have to prioritize the best ones for our business and cut the least attractive ones now and then to remain focused. Based on these factors, we decided to move this year’s Trivago spend and resources to other channels.”

Both Priceline and Booking.com currently remain partners with Trivago.

Trivago has grown steadily since its official launch in 2005, built in part on the back of TV campaigns in Europe and, more recently, in the US.

It claims to be comparing around 850,000 hotels from 264 booking sites (minus one now).

Trivago’s success clearly caught the eye of Expedia, which bought a majority stake in the company for $632 million in December 2012.

The bust-up with Agoda may well be isolated initially, but the issue is said to be shining a light on the tensions that are emerging between online travel agencies and their metasearch partners.