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Airline industry wary of merger between Expedia and Orbitz

Maryland travelers may appreciate the implications of a merger between online travel businesses Expedia and Orbitz. Expedia has agreed to pay in excess of $1 billion to acquire its competitor, which is expected to strengthen Expedia's ability to negotiate lower pricing with airlines and hotels. Both Expedia and Priceline, the company's biggest competitor, have been working to dominate the online market as the Internet has become one of the most common methods used for booking travel services. According to industry experts, this larger share of the market will allow Expedia to enjoy a stronger position in the chain of distribution, making it possible to compete for better terms with travel service providers. Those representing officials in the airline sector indicate concern due to the effects on competition and customer activities. Officials within the hotel sector express concerns about the impact on consumer choices. These industries are worried that the deal…

Why mergers fail in Maryland

According to a study conducted be a major accounting firm, more than four out of five mergers fail to improve shareholder returns. One reason why this so often happens is a lack of communication during the transition process. Many employees are going to be against the merger or are just going to become disengaged while at work. During the merger period, there is no such thing as communicating too much. Keeping lines of communication open can help win over employees who may not be on board with the change. Employee disengagement is an issue that needs to dealt with at the outset. Failure to do so could result in employees who offer nothing to the company either in the present or in the future. Severing ties with these employees may make it easier to fully invest in those who do have something to offer in the long-term. Another issue that…