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Big Travel Business Continue to Merge

Big name travel businesses continue to merge, less choices for consumers Big travel businesses continue to merge together, leaving less choices, competition, and potential higher prices for consumers. Last week, Continental and United Airlines joined up into one mega-airline, becoming the largest in the world: The world’s biggest airline got clearance for take-off today as [...]

Big name travel businesses continue to merge, less choices for consumers

Big travel businesses continue to merge together, leaving less choices, competition, and potential higher prices for consumers.

Last week, Continental and United Airlines joined up into one mega-airline, becoming the largest in the world:

The world’s biggest airline got clearance for take-off today as shareholders of United Airlines and Continental Airlines backed a multi-billion dollar merger that will create a carrier dwarfing rivals on both sides of the Atlantic.

The combined airline, which will adopt United’s name, is forecast to have $30bn of annual revenue, carrying 144m passengers a year to 59 countries. It will be larger than Europe’s top carrier, Air France-KLM, and will overtake its US rival, the newly merged combination of Delta Air Lines and Northwest. –United and Continental Merge

With rampant airline mergers, this now only leaves three major international airlines in the USA.

While on the other side of the Atlantic, Thomas Cook and Co-op just combined, making one huge travel business:

Under the terms of the deal, the combined entity will be 70pc owned by Thomas Cook and 30pc by The Co-op. The two groups hope to achieve synergies of at least £35m, predominantly from cost reductions. –Thomas Cook Co-op combine

What does this mean for travelers?

Less options and higher prices.

Filed under: Air Travel, England, Europe, USA

About the Author:

Wade Shepard is the founder and editor of Vagabond Journey. He has been traveling the world since 1999, through 88 countries. He is the author of the book, Ghost Cities of China, and contributes to Forbes, The Diplomat, the South China Morning Post, and other publications. has written 3411 posts on Vagabond Journey. Contact the author.

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  • Wade | Vagabondjourney.com October 10, 2010, 10:54 pm

    ANA, a large Japanese airline, also appears to be in on the United/ Continental merger:

    “United and Continental intend to establish with ANA a trans-Pacific joint venture, jointly managing activities including scheduling, pricing and sales and offering customers a greater selection of routings and a wider range of fare and service options.”
    -United/ Continental merger partners with ANA

    The racket grows larger.

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  • Wade | Vagabondjourney.com October 29, 2010, 4:04 am

    As the trend continues: Google moves to overtake ITA:

    “Various online travel companies are set to unite in an attempt to stop Google taking over ITA.

    The firms are mainly opposed to the $700 million deal due to the fact they believe it would spell higher prices for them as well as less innovation being experienced within the travel sector. Among the group, you are able to find the likes of Kayak.com, Expedia, Travelocity and Farlogix, who although usually fighting one another, appear to be water-tight in their attempt to overthrow the internet giant.”
    -http://news.carrentals.co.uk/online-travel-companies-united-in-bid-to-defeat-google-and-ita-34220425.html

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