Airline Loyalty Probe, Thomas Cook Sale and Hyatt Property Deals

Good morning from Skift. It’s Friday, September 6, 2024, and here’s what you need to know about the business of travel today.

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Episode Notes

The Department of Transportation officially launched a probe on Thursday into whether the loyalty programs of the four largest U.S. airlines are engaging in deceptive or noncompetitive practices, writes Airlines Reporter Meghna Maharishi. 

Transportation Secretary Pete Buttigieg sent a letter to American, Delta, United and Southwest requesting that they provide records about their loyalty programs. The department said its probe would focus on how frequent flyer programs are impacted by extra fees and hidden pricing as well as reduced competition and choice. 

The Transportation Department first announced last November it would investigate the fairness of loyalty programs. 

Next, Poland-based online travel agency group eSky is buying tour operator Thomas Cook for roughly $40 million.  Senior Hospitality Editor Sean O’Neill provides takeaways from the deal.

O’Neill notes eSky’s acquisition is part of its strategy to expand its package holiday business in Western Europe. ESky expects the deal to increase package sales by over $255 million next year. However, O’Neill adds eSky faces challenges in reviving a tarnished brand as Thomas Cook went bankrupt in 2019. 

Finally, Hyatt wants to own fewer properties, and executives say they have reached a goal of $2 billion in gross proceeds from selling real estate, writes Senior Hospitality Editor Sean O’Neill. 

CEO Mark Hoplamazian said at a conference on Thursday that Hyatt will continue to selectively buy, renovate and sell properties to increase its brand portfolio. Since 2017, Hyatt has generated $5.6 billion in gross proceeds from asset sales. The company is also looking to make deals like its recent acquisition of hotel booking site Mr & Mrs Smith, which quickly added 700 hotels to Hyatt’s loyalty program and caters to Hyatt’s high-end clientele.