Skift Take
Today’s podcast looks at Marriott’s big settlement, the shaky 2025 OTA forecast, and new loyalty rules for Hyatt and American Airlines.
Good morning from Skift. Itâs Thursday, October 10, 2024, and hereâs what you need to know about the business of travel today.
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Episode Notes
Marriott has reached an agreement with 49 states and Washington, D.C., to pay $52 million to settle charges related to data security, writes Senior Hospitality Editor Sean OâNeill.
OâNeill notes the settlement with the states relates to a database security incident in 2018 in the guest reservations system of Starwood, a hotel group Marriott had just acquired.
And the Federal Trade Commission is requiring Marriott to put in place a new data security program following three breaches from 2014 to 2020 that affected over 300 million people worldwide.
Next, 2025 might not be full of blockbuster activity for online travel agencies. The sector is projected to see more stock buybacks but not a lot of mergers and acquisitions, writes Executive Editor Dennis Schaal.
A BTIG research report revealed that Airbnb, Booking Holdings and Expedia Group will likely generate between $15 billion and $16 billion in free cash flow next year. Those companies are expected to allot $13 billion of that amount to stock buybacks.
However, the report said the online travel agency industry probably wonât see large-scale consolidation in the near future, with Schaal noting the regulatory environment in the U.S. and Europe isnât particularly friendly to big-time mergers.
Finally, Hyatt and American Airlines will make significant changes to the collaboration between their loyalty programs, writes Senior Hospitality Editor Sean OâNeill.
Both companies will offer more redemption options to their most loyal customers. Starting next year, members who link their programs can earn rewards from the partner program at various loyalty tiers. However, the ability for members to earn miles and points at the same time on stays and flights will end on December 31.
