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Good morning from Skift. It’s Tuesday, December 24, 2024. Here’s what you need to know about the business of travel this holiday season.
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Episode Notes
Hyatt Hotels said on Monday it’s in negotiations to buy Playa Hotels & Resorts, which would significantly expand its presence in the upscale all-inclusive resort market across the Caribbean and Mexico, reports Senior Hospitality Editor Sean O’Neill.
O’Neill notes the announcement comes after Playa’s board of directors had discussions with several potential buyers. Playa CEO Bruce Wardinski described Hyatt’s interest as a testament to the strength of his company’s business. A deal with Playa would represent another foray for Hyatt into the booming all-inclusive resort sector, with the hotel giant entering into a joint venture with Spanish tourism group Grupo Piñero earlier this year.
Next, Despegar, Latin America’s largest online travel company, has agreed to be acquired by technology firm Prosus for $1.7 billion in cash, writes Executive Editor Dennis Schaal.
Despegar CEO Damian Scokin said the deal, which is slated to close in the second quarter of 2025, would represent a “significant step forward” in its quest to grow in Latin America. Despegar also said it would benefit from Prosus’ advanced AI capabilities, among other attributes. Despegar would be delisted from the New York Stock Exchange when the deal closes and become a privately held company.
Finally, a Skift Research report earlier this year forecast that hotel websites could surpass online travel agencies as the main digital channel for hotel owners by 2030. However, Executive Editor Dennis Schaal explains there is a debate about whether that scenario would indeed take place.
Schaal notes the case for hotel dominance by 2030 is based on a survey where hotel owners and operators predicted their future distribution mix, and factors including a global mix shift toward branded hotels. In addition, there’s a strong correlation between the percentage of branded hotels and a command of direct bookings. Marriott reported that its share of digital direct bookings in 2022 was growing faster than its online travel agency channel.
But Schaal notes independent hotels are much more reliant on online travel agencies than major brands. A slowdown in independent hotels signing on with major brands could help online travel agencies in the race to attract bookings. And Schaal writes that hotels have reported that format changes Google made in Europe this March have favored online travel agencies and hurt traffic to hotel websites.
