Deals left travelers with fewer options in 2015
The wave of consolidation in the travel industry reached a new peak in 2015.
US Airways flew its final plane in October, fading into history just as PanAm and TWA did before it.
The finalization of the American Airlines/US Airways merger took the industry from eight major airlines in 2000 to just three four today—the new American Airlines, United Airlines, Delta Air Lines, and Southwest Airlines.
The hotel industry has taken note of the effectiveness of this strategy and has begun exploring its own mergers and acquisitions in an effort to combat new threats such as AirBnB.
"The airlines and hotels have historically had a reciprocal relationship with one another---following each other's lead," says Gray Shealy, executive director of Georgetown University's Master's of Hospitality Management Program. "If we look at what has happened with the consolidation with the big three U.S. airlines in order to become more competitive, we might certainly expect this of the hotel world too."
Marriott International's deal to buy Starwood Hotels and Resorts will create the world's largest hotel chain with 30 brands and 1.1 million rooms.
"We can do better by being bigger," Arne Sorenson, Marriott's CEO, who will lead the combined company, told Paste BN.
AccorHotels followed with its own deal to acquire FRHI Holdings Ltd, parent of Fairmont, Raffles, and Swissôtel, making it an even stronger player in the luxury hotel segment.
Fewer brands and loyalty programs to manage is not necessarily a bad thing. But some brands and programs are better than others, and consumers could lose out. Whatever the case, look for more mergers and acquisitions in the hotel industry in 2016.