Originally Posted by
pinniped
I think you're right on benefits, although not necessarily because of this merger. I think we're seeing it across the travel industry: airlines and hotels are gradually winding down their emphasis on loyalty programs and moving more to a model where paid premium customers get the benefits. They've figured out that yield is more important than frequency, and they've also figured out that loyalty programs aren't the differentiator that they once were.
I agree that airlines are having it good. But only partly because economy is up. The reason is also partly due to reduced options, reduced flights, limited competition (US domestic) and lower fuel costs. As for hotels, they do not have the same full advantages. Yes, there may be more stays (room occupancy) but there are certainly way more competition as compared to the airlines. Barrier to entry is also significantly way lower. Lastly, shared residences e.g. AirBnB is taking away some stays from the traditional hotels. Are the hotels making better profits? Yes they are. Are the chain dominating the market so much that they do not have to worry about competition like the airlines... not exactly true.