Thu, Jul. 14, 8:08 AM| Thu, Jul. 14, 8:08 AM | 1 Comment
Thu, Jul. 7, 2:57 PM
- Hilton Worldwide and Marriott International are offering better discounts to loyalty club members in a bid to lower the amount of payments doled out to online third-party services, according to the The Wall Street Journal.
- It's a trend that's likely to be followed across the industry as chains look to build stickiness with loyalty members.
- Many hotel operators have contracts with sites such as Priceline and Expedia that limit their ability to undercut pricing, with the important exception of loyalty members.
- Hotel and online stocks: BEL, CHH, EXPE, H, HLT, HMIN, HOT, IHG, MAR, STAY, WYN, TRIP, OWW, TZOO.
Sep. 18, 2015, 9:35 AM
- The U.S. government issues more regulations to open up business with Cuba.
- The rules will allow more travel, corporate expansion, and make it easier for companies to set up new operations in the nation.
- Many of the new measures go into effect on Monday.
- Companies with a potential interest in Cuba: RCL, CCL, JBLU, MA, V, OWW, AAL, NCLH, PEP.
- Related closed-end fund: CUBA.
Sep. 17, 2015, 10:33 AM
- With the DOJ having given its blessing to the deal yesterday afternoon, Expedia (EXPE +2.9%) has closed its $1.6B ($12/share) acquisition of Orbitz (OWW). The latter's shares have been delisted, while the former's are rallying for the second day in a row.
- Expedia and Orbitz both jumped shortly before the close yesterday after Bloomberg reported U.S. regulators were set to approve the tie-up. The DOJ confirmed the report after the close, declaring it has "concluded that the acquisition is unlikely to harm competition and consumers."
Sep. 16, 2015, 3:59 PM
- Bloomberg reports U.S. regulators are set to approve Expedia's (EXPE +5.1%) $1.6B purchase of smaller rival Orbitz (OWW +6.4%). Shares of both companies have shot higher in response.
- The DOJ has been closely vetting the deal, which has sparked complaints among travel industry firms about the post-merger company's dominant U.S. online travel share and potential pricing/bargaining power.
- Update (4:26PM ET): The DOJ has released a statement confirming it won't challenge the Expedia/Orbitz deal. "The Antitrust Division investigated the concerns that have been expressed about this transaction. We took those concerns seriously and factored into our analysis all of the information provided by third parties. At the end of this process, however, we concluded that the acquisition is unlikely to harm competition and consumers."
Aug. 12, 2015, 7:30 AM
- Orbitz (NYSE:OWW) says it's the first travel company to offer vacation packages through a mobile app.
- The number of vacation packages purchased through the Orbitz app have doubled over the past year.
- The company has 4M members in its reward program which it's looking to leverage for more sales.
Aug. 6, 2015, 8:44 AM
- Orbitz Worldwide (NYSE:OWW): Q2 EPS of -$0.04 misses by $0.14.
- Revenue of $239.59M (-3.4% Y/Y) misses by $14.26M.
Aug. 6, 2015, 8:38 AM
- The American Hotel & Lodging Association is urging federal regulators to block the merger between Expedia (NASDAQ:EXPE) and Orbitz Worldwide (NYSE:OWW).
- The hotel industry is leaning on analysis indicating an Expedia-Orbitz combination would lead to a 75% market share for online travel agent bookings.
- The higher market share could leave hotel operators with less leverage in what's already an uneasy partnership with online travel sites.
Jul. 30, 2015, 2:44 PM
- The NY Post reports the DOJ is expected to sign off on Expedia's (EXPE +0.8%) $1.6B acquisition of Orbitz (NYSE:OWW). Official approval could reportedly arrive by the end of August.
- The DOJ has been closely vetting the deal on account of Expedia/Orbitz's combined U.S. online travel share. Even after today's gain, Orbitz trades 5.5% below Expedia's $12/share buyout price.
- Expedia reports after the close. Orbitz reports on Aug. 6.
Jul. 20, 2015, 7:57 AM
- Orbitz (NYSE:OWW) discloses its rewards program topped 4M members.
- The company launched the program in Q3 of 2013.
- Execs with Orbitz have said in the past that the rewards program helps drive direct traffic and increase the hotel attach rate.
Jun. 9, 2015, 7:23 AM
- Lufthansa (OTCPK:DLAKF, OTCQX:DLAKY) is taking the dramatic move to charge passengers an extra fee for booking travel through third-party sites.
- Though many airlines are reducing the number of flight options they show on travel sites, Lufthansa is one of the first major carriers to charge for booking outside its network.
- The fee from the German airline for outside bookings will begin in September and average $18 per ticket.
- The trend could pick up warn some industry watchers.
- “Consumers are going to go to the price-comparison sites and thinking they’re comparing prices, but they’re not,” said Yale professor Fiona Scott Morton.
- Related stocks: EXPE, PCLN, OWW, TZOO, TRIP.
May 18, 2015, 2:26 PM
- Obitz Worldwide (OWW -1%) and Expedia (EXPE +0.3%) turned slightly lower in midday trading on reports the DOJ is meeting with hotel chains to discuss arrangements with the online travel sites.
- Government regulators asked the companies for more information and documents related to their business earlier this year.
- Orbitz and Expedia plan to merge later this year or early in 2016.
May 7, 2015, 9:26 AM
- Orbitz Worldwide (NYSE:OWW): Q1 EPS of -$0.19 misses by $0.22.
- Revenue of $220.2M (+4.7% Y/Y) misses by $3.93M.
Mar. 25, 2015, 6:12 PM
- Expedia (NASDAQ:EXPE) and Orbitz (NYSE:OWW) have both received a request for additional information related to the DOJ's antitrust review of Expedia's planned $1.6B acquisition of Orbitz. Naturally, the companies plan to "respond to the second request and to cooperate fully with the DOJ."
- The deal, together with Expedia's planned $280M acquisition of partner Travelocity, has sparked fears within the industry Expedia will have an oversized position in the U.S. online travel market, thus giving it excessive leverage with hoteliers. Priceline has a larger share overseas.
Feb. 12, 2015, 12:45 PM
Feb. 12, 2015, 9:15 AM| Feb. 12, 2015, 9:15 AM | 5 Comments