Regulatory and Legal Affairs - 10 Minutes News for Hoteliers - Page 31

1 min

US airlines secretly shared travel data with border patrol

📰 ARC, owned by major U.S. airlines like Delta and United, sold passenger data to CBP as of June 12, 2025. The data, comprising names, itineraries, and payments, aids in tracking individuals without legal oversight. This arrangement includes a secrecy clause and consists of over 1 billion records updated daily, spanning 39 months. Privacy experts criticize this practice, reflecting government reliance on private brokers for sensitive data.

1 min

Senate proposal threatens to cripple U.S. tourism marketing

💸 Jun 12, 2025: A Senate proposal threatens an 80% cut to Brand USA's funding—from $100 million to $20 million. The U.S. Travel Association warns this could harm the travel industry, notably affecting the 2026 FIFA World Cup and 2028 L.A. Olympics. The U.S. travel sector's $2.9 trillion output supports over 15 million jobs. In April 2025, five Brand USA board members were removed, highlighting political tensions. Critics argue the cuts could damage economic prospects.

2 min

Federal minimum wage could double under proposed bipartisan Senate legislation

💸 U.S. Sens. Josh Hawley and Peter Welch introduced the Higher Wages for American Workers Act to increase the federal minimum wage to $15 by January 1, 2026. The current wage of $7.25 has remained unchanged since July 2009. This marks the fifth attempt in Congress to raise the wage, originally part of Biden's 2021 plan. Previous attempts, including a $17 proposal in July 2023, failed. This bill excludes subminimum wage adjustments.

2 min

How Hospitality Can Thrive Amid a Tech Cost Crunch

📈 Rising hardware costs challenge the hospitality industry with potential tariffs on imported electronics impacting POS systems. Large chains may see costs increase by millions, while independent restaurants face cash strain, possibly leading to consumer price hikes. To mitigate, businesses should extend hardware life cycles using cloud-based solutions, like TRAY's shift to Android. Emphasize flexibility by adopting modular approaches for ordering and payment systems, safeguarding against future economic uncertainties.

Fake Booking.com messages cost hotels more than money

📱 Jun 5, 2025 - Phishing scams are soaring, impacting both travelers and hotels. Cybercriminals impersonate hosts on Booking.com, using WhatsApp or the app itself to deceive guests into off-platform payments. Booking.com reports a 500-900% scam increase over 18 months, yet preventative measures remain insufficient. Hotels face guest confusion, reputational harm, and financial strain, despite not being responsible for scams, while trust in the booking process wanes.

2 min

Adding value beyond the brand in residences

🏨 Boutique Hotel News, in partnership with Clyde & Co, hosted a Feed Your Mind event on branded residences at Mandarin Oriental Mayfair. This event highlighted the convergence of hospitality and living, with key discussions on managing residences within legal frameworks, planning control variances across countries, and service charge considerations. Companies like Aston Martin, Belmond, and Hyatt participated. Globally, branded residences command a 30% premium. Co-located hotels are favored for shared amenities and streamlined service charges.

2 min

European hoteliers file collective action against Booking.com

🏨 Netherlands: Over 25 European national hotel associations filed legal action against Booking.com over price parity clauses. 🏨 The lawsuit aligns with a September 2024 European Court of Justice ruling that challenged such clauses under EU competition law. The Stichting Hotel Claims Alliance, backed by HOTREC, leads the action for hotels linked with Booking.com from 2004-2024. Registration to join ends July 31, 2025. Booking.com argues these clauses ensure fair platform competition.

2 min

Independent Restaurant Coalition urges Congress to revise ‘No Tax on Tips’ legislation

💸 Senate and House passed the No Tax on Tips Act, proposing a tax deduction up to $25,000 for employees earning $160,000 or less, adjusted for inflation. Over 400 restaurant operators urge inclusion of kitchen staff to avoid penalizing independent restaurants. Critics, including the Economic Policy Institute, warn the act may not benefit lower-wage workers effectively. The legislation retains some tax obligations and could hinder career advancement and widen income gaps in the restaurant industry.

4 min

The First 100 Days: Assessing The Impact of the Trump Administration’s Policy Changes on the Hotel Industry

📈 April 30 marked the first 100 days of President Trump’s second term, with significant changes in tax and trade policies affecting the lodging industry. The 2017 tax plan, offering cuts for small businesses, is set to expire in 2025, prompting new legislative efforts. Tariffs initiated on April 2 target Canada, Mexico, and China. An executive order on February 26 limited non-essential government travel. AHLA's Hotels on the Hill event is scheduled for May 13-14 in Washington, D.C.

The loyalty shift: Why points alone no longer win hotel guests

🛌 May 29, 2025, highlights a shift in hotel loyalty programs. Points-based systems are losing appeal, particularly among younger travelers who prefer immediate, personalized rewards. Trust is eroding due to unfulfilled perks like free breakfasts. Experts suggest hybrid models blending points and emotional engagement. Tech integration remains a challenge, with AI and CRM vital for success. Staypineapple exemplifies this by replacing points with direct perks. Flexibility and human touch are crucial for maintaining relevance. Explore more on PhocusWire.

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