It turns out the case for whether mergers have been good or bad for consumers isn’t so clear either way. There are some benefits to stronger airlines, though low fuel costs and the state of the economy are bigger drivers of that than consolidation. We should be careful to remember, though, that correlation isn’t causation.
One Simple Insight Why an Airline’s Soft Product Matters
To me business class is always and everywhere about the seat. Sure, I love Singapore Airlines service and pre-order meals. It’s great that I get pajamas in Virgin Australia’s long haul business. But I will always make decisions based on seat first.
It turns out that research shows I’m an anomaly, that little touches influence what customers think even about the seat — and helps explain why customers will choose an airline with an inferior hard product when it gets the little touches right.
Banning Loud Smelly People from Trains Plus 2 Big ChasePay Advantages
The most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
Starwood CEO Expects to Sell By End of Year
Starwood CEO Adam Aron relayed during the company’s earnings call that he expects a sale by the end of the year. This morning I noted that Hyatt was rumored to be near an agreement to acquire Starwood. It would be interesting to see Adam Aron — who created the Gold Passport program as Hyatt’s Chief Marketing Officer — ultimately sell Starwood to his former employer.
For customers this would be the best possible outcome of any of the deal combinations Starwood is rumored to have looked at. I like this better than Wyndham, IHG, or Accor. For Hyatt and Starwood it’s not as clear how well an acquisition fills strategic gaps, however.
Here’s Everything You Need to Know About American’s New Flagship Dining Room in Dallas
Back in May I wrote that American was planning a limited Flagship lounge in Dallas. American wasn’t talking — but I got the airport to confirm it in June.
American’s Flagship Dining Room inside the D concourse Admirals Club has a soft opening starting tomorrow. Here’s what you need to know about access, meal times, and food and drink.
Coach Passenger Arrested for Using Business Class Lavatory
About two months ago I asked whether coach passengers should use the first class lavatory?
My own view is that passengers should be accommodated in their ticketed cabin first. But extenuating circumstances — a drink cart blocking the lavatory, a long line — make it ok to use the lavatory in a different cabin. Also that it’s usually ok to use the lavatory when the seat belt sign is on; what’s more important is what it smells like when you’re done.
THIS WOULD BE AMAZING: Hyatt in Advanced Talks to Buy Starwood
Starwood has definitely been on the auction block. Starwood has struggled to generate growth. Fundamentally that’s why their CEO Frits van Paasschen was out in February. Starwood retained mergers and acquisitions advisors. There have been rumors about Chinese acquisitions, as well as mergers with Wyndham, IHG, and Accor.
Now CNBC is reporting that Hyatt is in advanced talks to buy Starwood.
This Week in the Dallas Centurion Lounge: Special Eclairs and Custom Coffees
Hans Mast reports that the American Express Centurion lounge in Dallas has a special offering from Le Meridien this week, running through Friday, of special eclairs and coffee drinks.
British Airways Obliterates the 4500 Mile Award
British Airways upended their program in the fall of 2011. They started charging separately for each award flight segment, and charged based on distance. Short flights became a good value, and longer flights got expensive.
Unfortunately the 4500 point award is ending for flights originating in terminating in the U.S. effective February 2.
3 Chinese Firms Vying to Buy Starwood Hotels
Six months ago I speculated on what a Starwood-IHG (or Wyndham) merger would look like.
Three months ago market excitement ratcheted up over an IHG-Starwood combination, although that culminated in word from IHG that talks ended without a deal — although Starwood remained a potential acquisition target for Wyndham and Accor.
Now 3 Chinese firms are vying to make an offer to take over Starwood Hotels, at an expected price of more than $12 billion.