Travel buyers have been told to expect “significant change” in the hotel industry following Marriott’s acquisition of Starwood.
According to Carlson Wagonlit Travel’s latest white paper buyers need to start thinking about the implications and how it will change their travel programmes.
In 14 of the world’s top 20 cities, the new hotel group will have nearly a third of all the available rooms, rising to half in some places. CWT’s analysis also suggests Marriott, more than any other chain, has chosen not to take part in corporate travel RFP processes.
Scott Brennan, CWT EVP and head of global supplier management, said the implications are “potentially huge”.
“We think the new Marriott/Starwood group is going to have a lot of say in the market, which could alter the way corporate rooms are bought and sold,” said Brennan. “We don’t yet know the full impact and because the new group won’t be finalised in time for the negotiations this year, we won’t know until the 2017 negotiating season, in September next year.”
The white paper also advises buyers to consider the impact the deal will have on travel policy compliance. The analysis shows 22 per cent of non-compliant spend is with Marriott and nine per cent is with Starwood.
Brennan added: “According to a 2015 GBTA survey of corporate travel managers, hotel chain loyalty programmes is one of the underlying reasons for non-compliant hotel spend.
“We don’t yet know what changes, if any, the new Marriott will make to its and Starwood’s loyalty programme. But whatever happens, the new group already accounts for a large share of non-compliant spend.
“The combination of the new Marriott’s increased market share and the pulling-power of its loyalty programme means it will be in a very strong position. After all, volume drives the discussion in the hotel industry. On top of that, where a player the size of the new Marriott goes, others will follow.”
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