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Holiday Inn checks out of Expedia, Hotels.com

InterContinental Hotels Group pulls out of Expedia, saying it didn't meet its standards, turns to Travelocity.

InterContinental Hotels Group plans to stop listing its hotels on travel Web sites Expedia.com and Hotels.com, choosing instead to strike a deal with Sabre Holdings' Travelocity.com.

With the severing of the partnership, announced Tuesday, InterActiveCorp's Expedia and Hotels.com will no longer list rooms for InterContinental's 3,500 hotels including Holiday Inn and Crowne Plaza.

InterContinental said that it will only work with third-party Web sites that use clear marketing practices, honor its trademarks, guarantee reservations through a common process, and clearly present hotel fees to their customers. The company said its current deal with Expedia and Hotels.com didn't fit the bill.

"We could not secure this same commitment from Expedia, Expedia Corporate Travel and Hotels.com, and we will relinquish these relationships over the next several months," said a statement from Jim Young, the company's senior vice president of global distribution.

Tuesday's announcement illustrates the competitiveness in the online travel industry. Travel Web sites such as Expedia, Travelocity and Orbitz have resonated with travelers looking for cheap airfare, hotels and car rentals.

While hotel chains have profited well from third-party sites, many also have launched their own online booking services.

An Expedia spokesman said InterContinental hotels will remain on its sites for the time being, and customers will still be able to book rooms. The spokesman added that the company has not ruled out the possibility of a deal in the future.

Expedia and InterContinental "have been in negotiations for some time, and we're looking for ways to reach a mutual and beneficial agreement," Expedia spokesman David Dennis said in an interview. "We are open to keeping negotiations with them."