InterContinental cuts ties with Expedia and Hotels.com

Hotel giant InterContinental Hotels Group (IHG) has severed its links with online travel sites Expedia and Hotels.com after they failed to meet its demands.

The group said in April that it planned to get tough with third-party booking sites and would in the future only work with distributors "who clearly present taxes and fees to consumers, who respect IHG's trademarks, and who ensure reservations are guaranteed through an automated and common confirmation process."

While ditching Expedia and Hotels.com, IHG has signed an agreement with Travelocity to offer online deals for its more than 3,500 hotels worldwide, including InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express, Staybridge and Candlewood.

IHG expects to make further announcements about which websites it will and will not be working with in the next few months.

The move is part of a backlash by hotel operators against third-party booking sites offering discounted rooms.

Operators have been concerned they are losing control over their own ability to manage room rates according to supply and demand.

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