Are the big three online travel agencies about to become the big two … or one?
Maybe. There are signs that something is in the works.
Michelle Peluso is out at Travelocity. Steve Barnhart is out at Orbitz. And late last year, two key Expedia executives — Paul Brown and Dermot Halpin — left the company during a reorganization.
It goes without saying that the online travel agencies are in serious trouble and that consolidation — industry-speak for one company gobbling up another — is imminent.
At a time like this, I always turn to my friend the Professor for insights, but he’s also at a loss for words.
One Expedia insider has told me that a merger is likely, and soon. And that leaves me to wonder — who’s gonna eat whom? And what will it mean for travelers?
I don’t know. On balance, I don’t think consolidation of any kind is good for consumers. More competition usually leads to lower prices. So my instinct tells me that if, say, Expedia were to buy Travelocity, that prices would go up.
If that happened, the companies would couch the action as a “win-win” for shareholders and customers. But who would they be kidding?
Keep an eye on the big three online agencies during the coming weeks. I have a feeling something is about to go down.
