Question

Not long ago a major deal was confirmed with a Marriott-Starwood Merger. In life $$ CASH speaks volumes and our industry is no different.

ASSIGNMENT 1:

1) What impact has this merger had on the lodging industry

2) Do you believe this is good or bad move?

Answer 1

1) The impact this merger had on lodging industry is consolidation of standards and assets of two big hotel brands. It created a single entity giving choice to customers to choose from a range of facilities in different locations and formats. The customers have more opportunities to choose and avail benefits from the membership and loyalty programs.

The other major hospitality businesses have been evaluating the impact to formulate their strategies accordingly depending on market conditions. Financially there are opportunities to attract investors and stakeholders who like to influence the trends in hospitality businesses and develop competitive facilities as per new emerging trends.

2) This is a good move for the business and consumers with giving choices to consumers. It has given access to range of formats and well known assets to the business with well established customer base and loyalty programs. The move has created more opportunities for innovation for competitors and offer benefits to customers of different segments who prefer customisation and attention to their specific needs in hospitality business.