¨Consolidation means less equipment, less networks, and less jobs*.
The number of major players throughout the travel industry keeps getting smaller. Companies continually buy up competitors for the economies of scale and to reduce competition.
Many times, consumers believe that they are buying products from many different companies. instead, they discover what they thought was a different brand is owned by one large company.
The industry tries to create the allusion that there is more competition than exists by either:
- developing new product lines with a different name, or
- buying a competitor while keeping the name and product features.
Carnival and Royal Caribbean are an excellent example of this process. Many consumers believe that Holland American, Princess, and Carnival are different companies. Each company appeals to different clients and has a unique personality. However, Carnival Corporation owns all three of these cruise lines (as well as Cunard, Seabourn, P&O and Costa Cruises).