Booking’s Layoffs, Hyatt’s Boutique Strategy and Junk Fees on Trial
Skift Take
Key Points
- Booking Holdings laid off 60 employees at Rocket Travel to streamline operations and refocus global priorities.
- U.S. Senators criticized airline executives for imposing 'junk fees,' with debates intensifying over transparency.
- Hyatt plans to expand its luxury segment by partnering with independent hotel owners through soft brand affiliations.
Summary
Booking Holdings has laid off 60 employees at its Rocket Travel division as part of a strategy to streamline operations and refocus its global priorities, though its overall business-to-business approach remains unchanged. In another development, U.S. Senators criticized airline executives for their use of 'junk fees' during a hearing, leading to heated debates about pricing transparency. Meanwhile, Hyatt is pursuing growth in the luxury hotel market by collaborating with independent owners through soft brand partnerships, allowing hotels to maintain their identity while benefiting from Hyatt's network.
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Episode Notes
Booking Holdings has laid off around 60 employees at business-to-business arm Rocket Travel by Agoda as part of its efforts to reset its global priorities, reports Executive Editor Dennis Schaal.
Schaal writes that the move is designed to streamline Rocket Travel’s operations, with some roles being moved closer to a tech center in the Asia-Pacific region. A Booking Holdings spokesperson said the company’s overall business-to-business strategy isn’t changing though.
Schaal adds the layoffs are the first to occur after Booking Holdings’ recent announcement that it would be making organizational changes that could include firings.
Next, airline executives faced a grilling from U.S. Senators on Wednesday over the use of so-called junk fees, writes Airlines Reporter Meghna Maharishi.
A Senate subcommittee recently released a report critical of airlines adding fees to seat selection and checked-in baggage. Maharishi notes the hearing got heated as Senators from both parties expressed frustration that executives wouldn’t reveal what determines seating fees. Senator Josh Hawley from Missouri said flying has become a horrible experience.
But executives such as Spirit Chief Commercial Officer Matt Klein defended their business models, arguing that Spirit’s unbundling airfares has made travel more accessible.
Finally, as part of its plan to open more than 50 luxury and lifestyle properties globally by 2026, Hyatt is courting independent owners who don’t want to affiliate with big chains, reports Senior Hospitality Editor Sean O’Neill from the ILTM conference in Cannes, France.
Hyatt’s luxury strategy includes building its soft brands, which are collections of hotels that keep their identities while tapping into Hyatt’s distribution network.
A Hyatt executive said some hotel owners want the benefits of being associated with a major brand without having guests know about that affiliation.
Hyatt is providing hotel owners operational support without requiring them to display the Hyatt name prominently on their hotels. Roughly 20 ownership groups are now developing multiple properties within Hyatt’s soft brands.
Photo Credit: Overhead luggage bins on a plane. Adobe Stock / Surachetsh
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