Just a few years ago, eight airlines competed to control about 88 percent of the domestic market.
Now only four airlines actually DO control 80 percent of the U.S. market.
With the most recent hotel mergers, it’s clear hotels are following that lead.
Marriott just bought Starwood in a $12.2 billion deal. AccorHotels, the giant French company, just purchased Fairmont.
So what does this mean to you? It may not be good.
In some cities, the Marriott/Starwood combination means the new company controls about 56 percent of all available rooms.
With that kind of market dominance, hotel room rates may be on the rise.
Right now it’s up to the federal regulators to determine if the merger violates antitrust laws.
So stay tuned. Because more mega mergers may soon be around the corner.
For more information about hotels, check out:
- Changes for Hotel Check Out Time
- How Room Rates are Changing in Major Cities
- Why It’s Illegal for Hotels to Block Wi-Fi Hotspots
Keep reading for more travel tips.