Categories: Special ReportLodging

Consolidating Gains

As hotel industry mergers and acquisitions continue, is the result for travel programs a boon, bust – or both?
Consolidation has been all the buzz in the hotel industry for the last few years. While the headliner was the acquisition of Starwood by Marriott, there have been other mega-deals – like Accor buying Fairmont Raffles Hotels International (FRHI), IHG acquiring Kimpton, Wyndham buying La Quinta and others.

But those are just the high-profile transactions. For instance, to cover all the bases with travelers seeking different kinds of accommodations, Accor also bought 21c, a group of “museum-style” hotels; and Hyatt acquired Two Roads Hospitality, a boutique collection.

Normally, consolidation would mean more leverage for the ever-bigger hotel companies and a tougher negotiating position for travel managers – and indeed that has happened. But discussions with players and analysts shows that the picture is more muddied, and there are positives for travel programs in the M & A trend.

For one thing, even with its mammoth global size Marriott controls a relatively small percentage of hotel rooms worldwide, particularly outside of North America. Also, the ever-growing presence of third parties – for example, OTA’s like Expedia and Booking Holdings – further complicates matters. And in the end, the corporate/hotel relationship tends to be an individual one.

Lodging Promo


Full Access to premium content subscribers only. Please login below or register HERE

Forgot Password?

Not registered yet?

Contact Us

Publishing Office:
Eleven Ryerson Place #201
Pompton Plains, NJ 07444

Contact Us

Editorial Office:
5768 Remington Drive
Winston-Salem, NC 27104

Business Travel Logo

Contact Us

Subscription Services:
P.O. Box 542
Pompton Plains, NJ 07444

NY Medical Nutrition
Back To Top