Regulatory and Legal Affairs

🏨 National hotel associations from 25+ European countries are launching a collective action against Booking.com, supported by HOTREC. The legal move follows the ECJ ruling on 19 September 2024, declaring Booking.com's parity clauses as violations of EU competition law. Hotels can reclaim commissions paid from 2004-2024. The deadline to register is 31 July 2025. The action is coordinated by Stichting Hotel Claims Alliance, with proceedings in the Netherlands. More details at www.mybookingclaim.com.

💸 Premiums in hotel industry insurance have been rising significantly in recent years, affecting property, general liability, and umbrella policies. Increased claims and settlements, particularly from natural disasters, human trafficking, and ADA lawsuits, are key factors. The market requires more underwriting detail, safety measures, and risk management. Franchisees face challenges with fewer carriers and stricter policies, especially for older properties. Some hotels opt for higher deductibles to manage costs, while strong broker partnerships help navigate these challenges.

💰 USALI, first developed in 1926, is a standardized accounting system for the hotel industry, crucial for financial transparency and benchmarking. The 12th edition, effective January 1, 2026, includes updates for sustainability, all-inclusive hotels, labor cost transparency, and brand/operator cost reporting. Aligned with GAAP but also addressing IFRS, USALI aids in securing financing and improving comparability. Proper implementation in PMS systems is critical to reduce errors and improve financial decision-making.

🌎 May 23, 2025, Seattle: At Expedia's EXPLORE conference, leaders like Expedia CEO Ariane Gorin and U.S. Travel Association President Geoff Freeman highlighted declining international arrivals and economic pressures. They urged investment and policy reform ahead of the 2026 FIFA World Cup to harness its potential for travel growth. Key issues include infrastructure investment, simplified processes, and improved visitor experiences. Despite challenges, economic softness may lead to travel deals for U.S. vacationers this summer.

🏨 WASHINGTON—In September 2024, the American Hotel & Lodging Association (AHLA) praised the U.S. House for key tax provisions in the Budget Reconciliation package, benefiting small business hotel owners. The provisions include the permanency of the Small Business Deduction (Section 199A), preservation of Like-Kind Exchange (Section 1031), and a five-year extension of 100% bonus depreciation. These measures aim to prevent tax hikes, encourage reinvestment, and stimulate economic growth. AHLA urges Senate approval and President Trump's signature.

💰 Sen. Ted Cruz introduced the "No Tax on Tips Act" in January, passed unanimously in the Senate on Tuesday. If enacted, it offers a $25,000 tax deduction for tipped employees earning $160,000 or less. However, 37% of tipped workers in 2022 did not qualify for federal income tax. The bill requires employer payroll taxes and state taxes on tips. Nevada has the highest per capita tipped workers, which Sen. Catherine Cortez Masto emphasized in her support.

💸 Switzerland's price watchdog, on May 22, 2025, mandated Booking.com to cut hotel commission fees by nearly 25% under national pricing laws. This decision, applicable for three years once enacted, comes amidst a broader European trend for greater OTA pricing transparency. Booking.com, planning an appeal, has three months to comply. The commission rates remain unchanged during the appeal. Swiss law already forbids OTAs from enforcing price parity clauses, aligning with recent European Court of Justice support for hotel price flexibility.