Marriott and Starwood merge, the business 188bet sports betting market needs to prepare for the impact

Big accommodation Author of this article: Xu Liyang 2016-08-20
It will take a few weeks for the Marriott-Starwood merger transaction to be completed,It will take longer for the two companies to integrate with each other,But 188bet sports betting managers and TMCs would be wise to start preparing now for final negotiations with the hotel giant。

Due to the third phase review required by Chinese regulators,Making the .2 billion Marriott-Starwood merger take longer than expected。During this period,188bet sports betting management companies are already considering the impact of the upcoming launch of the world’s largest hotel company。Bjorn Hanson, a professor of hospitality and tourism at New York University’s Tisch Center, said: “There has never been a merger like this in the history of the hotel industry。In terms of scale and importance,The hotel industry has never experienced anything like this。”

After the merger transaction is completed, a company with nearly 30 brands will be born、Hotel group with 5,500 hotels and more than 1.1 million rooms。Many people are worried that after such a scale is formed,This hotel group will be in a dominant position when negotiating business 188bet sports betting prices with enterprises in the future。

CWT Solution Group, a consulting arm of Carlson Schwab Transport (CWT), warned in a report,“With daily room rates and occupancy rates climbing to record highs in many major markets around the world,Basic economic principles tell us,Less competition 188bet sports betting only lead to higher prices,The greater the challenge when negotiating,Especially in markets where travelers don’t have many choices。”

Obvious advantages of scale

An analysis report from Marriott Starwood Hotel Group shows,Once the merger transaction is completed,The group will account for nearly 1/3 of corporate business 188bet sports betting consumption in 14 of the 20 most major cities in the world,In some cities it even accounts for 1/2,For example, Chicago、Dallas、Mexico City、Minneapolis、New York and Shanghai。

Bjorn Hanson said,“Many conference markets and corporate business 188bet sports betting in big cities generally choose Marriott and Starwood。With the merger of two competitors,Now there is a situation where one company is the only one in the business 188bet sports betting market。In markets where Hilton or InterContinental Hotels have a relatively low market share,The merger of Marriott and Starwood will change the previously dynamic competitive landscape。”

Competition remains fierce

Some 188bet sports betting management companies point out,This merger may trigger more intense indirect competition,Forcing other hotel companies to offer more attractive rates or amenities。

Mike Qualantone, senior vice president of supplier relations for Global Business 188bet sports betting (GBT) at American Express, said in an email: "The new Marriott after the merger will have a large number of room inventory sales,May prompt other big hotel brands as well 2、Third-rate hotels lower room rates,Enhance WiFi、Convenience facilities such as breakfast and parking。These convenient facilities and services provide greater convenience for travelers on the one hand,On the other hand, it can also further reduce corporate 188bet sports betting costs。”

Also,Pointed out by Kim Kearns, Senior Director of Supplier Relations at BCD Business 188bet sports betting,Even hotels under the same parent company must rely on competition to attract business,She said: "Instantly, hotels under the same chain brand or in the same business unit,Competition still exists。”

Loyalty issue

After the merger of Marriott and Starwood,It is unknown what to do with customers who join the Starwood loyalty program。But Hanson said,Given that both parties have no prejudice against each other,I believe that Marriott 188bet sports betting treat members of the Starwood loyalty program equally。He said: "If Marriott neglects those members,I would be very surprised,Marriott 188bet sports betting not do anything to make those loyalty members lose confidence in the new company。”

However,For 188bet sports betting managers,If Marriott or Starwood are not the company’s preferred options,But travelers still book hotels there,Then there is a problem with the level of loyalty。

Report published by CWT Solutions Group,More than 22% of excess hotel spending occurred at 188bet sports betting hotels,9% at Starwood Hotels。

Reported,It is currently impossible to predict which hotel’s loyalty program the new company will follow,and,For 188bet sports betting managers,It will be difficult to choose between two loyalty programs。

The report also makes recommendations,Corporate business 188bet sports betting buyers should be more flexible in handling the problem of excessive number of travelers,Provide other business trip accommodation options when appropriate。

There is still time to adapt

The gratifying thing is,Business 188bet sports betting buyers have enough time to adapt to this new normal。Observer Analysis,Next year’s corporate 188bet sports betting price negotiations will begin this fall,Not expected to change much from last year。

Kearns said: “It will be business as usual in 2017。”She and others who share this view believe that,Real changes are likely to occur in 2017,At that time, hotels and corporate 188bet sports betting purchasers will carry out corporate 188bet sports betting price negotiations in 2018。But she said,Given the scale of this merger and the potential for greater consolidation in the 188bet sports betting industry in the future,Customers are starting to make their voices heard。

She said: "Customers 188bet sports betting definitely have various worries and questions about mergers and acquisitions。” also means,The impact of mergers and acquisitions on each company is different,Businesses don’t have to worry too much about this。

“We feel that this merger 188bet sports betting not have any negative impact on negotiations with enterprise customers as a whole。” Kearns said。

* Author of this article: Xu Liyang,Zhihui 188bet sports betting Analyst,Head of Zhihui’s office in Berlin, Germany。

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