Global Hotel Network | Surviving and Thriving in a Merger: Three Strategies

Ann Fastiggi, head of our Hospitality and Leisure Practice, publishes her latest Perspectives Column on GlobalHotelNetwork.com, a thought leader coalition providing expert market insights and thought leadership perspectives to C-level executives in the global travel and tourism industry.

In her feature piece, “Surviving and Thriving in a Merger: Three Strategies”, Fastiggi offers advice executives can and should employ to give themselves a better shot at keeping their jobs and carving out a future at the newly expanded company. She writes:

Merger fever is running hot, and it is not going to subside any time soon. Across the hospitality industry, companies are consolidating in their fight for greater control of the market. From major hotel chains acquiring both large and small competitors to restaurant amalgamations, the big players in the hospitality industry understand the advantages of size, particularly in this increasingly global market. Bigger companies have better buying power in terms of supply chain and procurement, offer more opportunities for customers to use loyalty rewards programs, and can more easily negotiate with Priceline, Expedia, and other online travel deal sites. As the cost of doing business rises and hotel chains face growing competition from disruptors like AirBnB, the push for consolidation will only intensify…

…Remember: mergers are not always a bad thing. [They] can be great for a company and for the people who make a future for themselves at the newly expanded organization. The 1999 merger of Hilton and Promus is a great example of this. Hampton Inn and Doubletree, two of the Promus brands, are now some of Hilton’s best. Employees from Promus who found a future at Hilton have benefited from the merger enormously. The upcoming merger you fear could actually be your greatest opportunity – if you play your cards right.”

To read the full piece, click here.

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