Priceline agrees to room-booking deal with TripAdvisor
Priceline Group Inc said its Booking.com customers will now be able to directly book hotel rooms on travel review website operator TripAdvisor Inc .
TripAdvisor shares jumped 21 percent to $80.68 in premarket trading on Wednesday. Priceline shares rose nearly 1 percent to $1,354.
TripAdvisor introduced an instant booking feature last year that allowed travelers book a hotel directly from its website, instead of getting directed to a third-party booking site, in an effort to improve conversion rate and boost revenue.
Priceline and Expedia Inc had initially declined to join TripAdvisor's instant bookings platform, fearing the move would increase competition.
But the instant booking option got a big push after Marriott International Inc agreed to list its hotels on Tripadvisor's platform in June.
"Millions of TripAdvisor users coming to the site to plan, compare prices and book their trip will be able to instantly book options from The Priceline Group's global hotel inventory ...," TripAdvisor Chief Executive Stephen Kaufer said.
Priceline and TripAdvisor did not disclose how they will share revenue generated from the deal, but said the partnership was in time likely to include Priceline's other websites Priceline.com and Agoda.com.