Regulatory and Legal Affairs

💸 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.

💸 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.

📈 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.

🏨 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.

🏨 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.

💸 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.

🏨 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.

💰 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.

💰 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.