by Jen Mallia
Last updated: 3:55 PM ET, Wed February 12, 2025
Following the announcement of Hyatt’s intention to acquire Playa Resorts, industry reaction has ranged from optimistic to somewhat more cautious. Concerns about consumers not having as much choice, a narrowing field of competition and the potential loss of Playa’s strong travel advisor support are top of mind for some advisors.
With the rapid expansion of the Hyatt brand into the all-inclusive space, questions about saturating and overdeveloping the market, particularly in destinations that are fragile or prone to overtourism have also been raised.
“As we are starting to see major hotel brands acquire more properties under their umbrella, consumers may find less truly distinct options to select from as individual and boutique hotels or brands tend to merge with similar brands or simply get "re-branded" when acquired,” says Renee Tsang, travel specialist at Renee Tsang Travel in Calgary. “There will be less individuality and boutique offerings, and the experiences among brands may consolidate and become uniform and less innovative or unique. And with less choice available to consumers, monopolies tend to result in higher prices and less focus on quality of experience.”
Melissa Willows, certified travel counsellor at Indulgence Vacations in Halifax will be watching to see how it plays out, but is hopeful. “I’ve always appreciated both Hyatt and Playa Resorts for their unique strengths, it will be interesting to see how this acquisition unfolds,” she says. “While brand consolidation can bring efficiencies, competition and differentiation are essential for driving innovation in the hospitality industry.”
Tsang agrees. “We can only hope that there are some positives to this acquisition in that the investment may result in necessary improvements to properties in need of financial investment for a higher quality experience, and one that aligns with the Hyatt brand and quality that consumers and travellers can expect.”
“I've always had great feedback from clients who have spent time at Hyatt All Inclusive resorts,” says Joey Silver, Vacation Consultant & Office Administrator at Expedia Cruises, Air, Land and Sea Vacations in St. Albert, AB. “ I think when a strong, reliable brand such as Hyatt expands its resort portfolio, it can only benefit the overall guest experience.”
A big concern when there are fewer players in the market is the absence of competition to drive prices down. “Competitive pricing remains a key factor for Canadian travellers,” says Willows. “I hope Hyatt prioritizes affordability while expanding its offerings. Equally important is maintaining distinct brand identities—what makes a resort special is its individuality, and I hope that remains a priority as this transition moves forward.”
Specific concerns for advisors remain to be resolved, as well. Playa Resorts has been seen as a strong supporter of travel advisors with a robust loyalty program incentivizing support, with a strong BDM support as well. “Anytime there is change and an acquisition involved, there are always concerns about losing opportunities, unique offerings, personalized support and attention to detail,” says Tsang. “Many large corporations tend to move towards consolidation and cutting out ‘middle men’ and pushing consumers towards direct bookings with higher incentives for loyalty bookings, resulting in less reasons to book with a travel advisor or an agency, and less BDM support for travel advisors as well as a part of the consolidation.”
The strength of the Hyatt brand and the financial backing of the organization will likely be a boon to Playa Resorts, advisors hope what has made Playa special will remain despite the merger.
“What we have loved about Playa Resorts as a travel advisor and a consumer is their ‘Service from the heart’ motto that is evident in every level of service,” says Tsang. “From the staff at the resort, to the BDM support to travel advisors, the attention and care to service is front and center, highlighting the utmost care in end user experience.”
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