The golden egg

Amsterdam. Things are moving in the lodging industry. Marriott took over Starwood and these two chains will soon become one mega-group managing 1.1 million rooms. Today, more than ever, size means everything in the industry. It gives power, control over millions of loyal customers, marketing and prices, a global footprint, and last but not least, leverage against OTAs when it comes to distribution costs. Does it mean the bigger a group becomes, the better it can operate without OTAs? An industry insider thinks this is the case and even suggests that more consolidation in the sector could lead to the extinction of OTAs. But OTAs have what it takes to resist. And they grow by M&As in their own business field. Which dynamics drive which OTA? Sarah Douag analyses the current OTA behavior in the market – read about Expedia, Priceline, Sabre, Google, TrustYou and TripAdvisor in a first part today and in a second to follow next Friday, then focused on the holiday homes activities.