Regulatory and Legal Affairs

545 posts

Legal and regulatory news for hospitality: laws, compliance and policy affecting hotels and their operators.

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Hotels face rising costs for direct bookings

📈 Hotels face increased guest acquisition costs due to privacy restrictions and transparency standards as of November 24, 2025. Privacy rules hinder tracking, while rising media costs boost cost per acquisition. Regulations like third-party cookie loss demand strategic shifts towards first-party data, SEO, and compliance. The Cendyn report highlights that hotels must adapt to a more regulated marketing environment, focusing on direct engagement and channel consistency to maintain trust and manage costs effectively. Read Cendyn's full report for more insights.
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Marriott faces backlash after Sonder liquidation

💸 Marriott faced operational risks on Nov 20, 2025, when Sonder, a partner in asset-light expansion, went into liquidation, causing guest displacements. Guests were informed that reservations were invalid, and refunds became complex since payments went directly to Sonder. This left travelers pursuing credit card disputes. The collapse resulted from Sonder’s financial decline, delayed filings, and integration issues. Critics highlight Marriott's misjudgment of Sonder’s instability, impacting its reputation.
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Marriott details Sonder’s collapse and alleged safety threats

🏨 Marriott, on November 20, 2025, revealed Sonder's financial collapse, detailing rapid liquidity issues and guest risks. Sonder's cash reserves dwindled by early November, leading to potential guest lockouts. Marriott terminated their agreement on November 7 to protect guests and address global disruptions affecting 7,700 rooms. Sonder owes Marriott nearly $18 million and requested up to $28 million for wind-down support, which Marriott refused. Guest payments went directly to Sonder, complicating recovery efforts.
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Watchdog bans hotel adverts over “misleading” prices

💸 UK, April-May 2025: The Advertising Standards Authority (ASA) upheld complaints against Accor, Booking.com, Hilton, and Travelodge for misleading 'from' prices. Ads overstated deals with limited room availability at the advertised rates. Accor was cited for £27 rooms at Ibis Budget Birmingham Centre. ASA's AI identified these ads, leading to their removal and future compliance orders. Companies acknowledged the issue, promising clearer pricing.
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Airlines miss out on billions in annual FX…

💵 About 40% of airline tickets bought online involve cross-currency transactions. Airlines could earn $1.74 billion more annually if they implemented Multi-Currency Pricing (MCP) on their websites. If all cross-currency transactions used MCP, revenue could reach $9.6 billion. Asia Pacific and EMEA regions hold the highest potential for FX services. Early adopter SriLankan Airlines has integrated MCP since 2021, making it a top ancillary product. Transparency in FX charges is advised for airlines.
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UK regulators crack down on “from” price claims in hotel advertising

📑 Nov 19, 2025, UK: The Advertising Standards Authority banned ads from Booking.com, Accor, Travelodge, and Hilton. Their “from” price claims were misleading due to limited availability. Booking.com and Hilton failed to provide evidence of room availability at advertised rates. Accor and Travelodge offered prices valid only on specific dates. The ASA emphasized the need for clear disclosure of limited-availability prices, rejecting Booking.com's dynamic pricing defense.
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President Trump lifts food tariffs on select items, including beef and coffee

📦 President Donald Trump, on November 14, lifted tariffs on items like coffee, tea, and beef. Previously, tariffs introduced in April affected 74% of the $221 billion U.S. food imports, with rates up to 50% for countries like Brazil. This rollback aims to soothe the restaurant industry amid a 40% rise in food costs over four years. However, tariffs remain on products like tomatoes from Mexico, wheat, and dairy. The National Restaurant Association and others support this change.
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Ageing populations reshape travel demand

🗺 Europe, Nov 17, 2025: Europe’s tourism faces challenges with a shrinking customer base due to declining birth rates and an ageing population. Travelers over 65 now represent a significant market, with 40% experiencing disabilities. Rising VAT and city taxes pose additional pressures. In contrast, the U.S. and Japan see growth with competitive pricing. Local funding issues drive new tourism taxes, risking the industry's competitiveness. Industry leaders warn of a potential "Buckaroo moment" from excessive taxation.
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U.S. tourism hit by continued steep drop in Canadian visitors

💸 Nov 17, 2025, U.S.: A 30% drop in Canadian visits has led to a $5.7B decline in U.S. tourism spending in 2025. Political tensions, trade policies, and new border rules deter Canadians. Tourism-dependent states face economic risks like reduced hotel occupancy and local tax revenue. The U.S. is approaching a $70B travel trade deficit. Efforts to attract Canadians include discounts, as Canadian spending in some towns drops nearly 40%.
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