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What Travel Industry Mergers Mean for Travelers

by Nicole Quaste

Dec 12, 2016
eFlyer Lead

2016 saw several key mergers and acquisitions in the travel industry: Marriott International closed its $13.3 billion acquisition of Starwood Hotels & Resorts, bringing Marriott’s portfolio to 30 brands; Alaska Air Group acquired Virgin America, requiring changes to Alaska Airlines’ codeshare agreement with American Airlines; China’s HNA Tourism Group recently bought out all Carlson Hotels and also acquired Carlson’s 51.3 percent stake in Brussels-based Rezidor Hotel Group.

These mergers and acquisitions directly affect consumers in both the leisure and corporate travel industries. While we’re just beginning to see the effects of these mergers, it’ll become clearer in 2017 how exactly they will impact consumer travel in terms of prices, loyalty membership offerings and transportation and accommodation options. More often than not, hotel and airline mergers result in increased pricing, as brands once competitive no longer need to maintain that competitive edge.

Jeff Hillenmayer, head of corporate hotel sourcing for the Americas, Hotel Reservation Service, talked to Skift about the impact of transactions like Marriott-Starwood and said, “All companies are looking at driving savings, and the only way to do that in a market that’s experiencing inflation is looking at other options and seeing what’s out there.”

In other words, in terms of the hotel industry, it may be valuable to look outside some of the biggest chains during these types of transactions.

While 2016 saw significant alterations within the travel industry with mergers, acquisitions and bold innovations that change the way we travel for both business and leisure, 2017 will bring the fallout. For frequent travelers and corporate travel planners especially these big moves can be unsettling. It’s too soon to tell exactly how these recent deals will play out, but it’s clear travelers and travel managers will be impacted one way or another.

Have you experienced any changes in accommodation or transportation options or prices that impacted your travels in 2016? Do you foresee any of these transactions impacting your 2017 travels? Email us and let us know. Please include your full name and location with your email.

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