Travel Industry Roundup | August 26
This week in the travel industry: hotels are merging, hostels are going upscale, and airlines are recording record profits. Check out those stories and more in Rocketrip’s roundup of the latest news from the world of business travel.
Corporate Travel Braces for the Impact of the Marriott-Starwood Merger
According to a report from CWT Solutions Group, the post-merger company “will have nearly a third – and in some cases half – of the corporate travel hotel spend in 14 of the world’s top 20 cities, including Chicago, Dallas, Mexico City, Minneapolis, New York, and Shanghai.”
That level of market share is worrying for travel managers, who are expecting a more difficult environment for rate negotiations. However, the merger also presents opportunities for cost savings, as smaller hotel chains could respond with price breaks.
The Best Hotel Rewards Programs of 2016
If industry consolidation has you looking for a new go-to hotel brand, be sure to review our post on US News & World Report‘s latest rankings of the best hotel rewards programs.
For the first time since the rankings began, Marriott Rewards has lost its top spot. The new number one program is Wyndham Rewards, and that change reflects a broader trend in travel loyalty programs.
At Fancy Hostels, Business Travelers Are Replacing Backpackers
Rather than looking for a new hotel, you could join the growing number of business travelers who Bloomberg reports are giving hostels a try. With stylish design, private rooms, and a professional clientele, hostels from chains like Generator and Freehand are cost effective without being crunchy.
Qantas Announces Record Profits
Australia’s flag carrier, Qantas, announced this week that it has earned record annual profits of $1.1 billion and will distribute dividends to shareholders for the first time in seven years. As reported in The Economist, Qantas’ slow return to profitability is largely the result of low oil prices, an especially important cost-consideration given that Australia is a long-haul destination from just about every part of the world.
Flights to Mexico Are About to Get Much Cheaper
Compared to Australia, it’s easy to get to Mexico from the United States. And it’s about to get even easier, after U.S. and Mexican regulators agreed to remove restrictions on the number of airlines and flights that can operate between the two countries. TravelPulse looks at which airlines are increasing service in response to the new rules.