Regulatory and Legal Affairs

📊 HOTREC, representing 47 associations in 36 countries, highlights key facts: Europe’s hospitality sector comprises 2 million businesses supporting over 10 million jobs, mostly SMEs and micro-enterprises. The sector contributes 10% to the EU's GDP. Despite resilience, challenges include high EU inflation, rising food and energy costs, and geopolitical instability, particularly near Ukraine. Post-pandemic, skill and labor shortages persist. HOTREC supports the EU's Competitiveness Compass and Single Market Strategy, emphasizing subcontracting flexibility without EU-level legislation.

💸 Airbnb hosts face new challenges as the platform updates its payment terms. Guests can now reserve without upfront payment and cancel 72 hours prior, leaving hosts uncompensated. Post-checkout, guests can dispute charges while Airbnb retains service fees. Payment delays occur at Airbnb’s discretion, affecting cash flow. This shift increases hosts' risk, prompting calls for direct bookings and independent payment methods. Critics argue it’s digital feudalism, prioritizing Airbnb's profits over hosts' autonomy. #DigitalSharecropping #PlatformExploitation

🗺 Spain's crackdown on illegal short-term tourist rentals led Booking.com to remove 4,093 ads, under 2% of its 200,000 Spanish listings. The Canary Islands were notably affected. Spain also pressures Airbnb to eliminate 65,000 unlicensed ads. In 2024, 94 million foreign tourists increased housing pressure. Consumer rights minister Pablo Bustinduy targets speculative models harming communities.

📃 European Parliament's IMCO Committee report on Package Travel Directive revision noted by HOTREC. Adopted today, the report allows Member States to decide on prepayment limitations; HOTREC opposes this, aligning with Council's December 2024 and TRAN Committee’s April 2025 opinions. Concerns over 24-hour package definition and broad cancellation rights were highlighted. HOTREC seeks a balanced revision to protect consumer rights while supporting European hospitality growth.

💸 In 2023, a class action lawsuit in Europe targets Booking.com for alleged dominance abuse through parity clauses and high commissions. While legal action like Switzerland's commission ceiling might appeal, the real concern is hotels' dependence on OTAs. Essential questions include the readiness to diversify channels and invest in marketing, as OTAs might offer higher NetRevPAR. Without addressing business fundamentals, like distribution strategies, hotels risk losing volume. What's your Plan B if Booking.com vanished tomorrow?

🚩 President Donald Trump, in his second term starting January 2025, initiated significant immigration crackdowns affecting the restaurant industry with about one million undocumented workers. On January 20, Trump declared a national emergency at the Southern border and signed orders impacting birthright citizenship. By January 25, ICE arrests were ordered to rise to 1,200-1,500 daily. On June 16, DHS reversed pauses on enforcement in agricultural, hotel, and restaurant sectors, maintaining a daily arrest quota of 3,000.