Regulatory and Legal Affairs

🚨 Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds are working on a policy to potentially require employers to offer zero-hour workers a regular contract after 12 weeks. Discussions took place via video conference on September 18. The new Employment Rights Bill, which includes not outright banning zero-hour contracts, is set to be unveiled next month. Approximately 1.1 million people in Britain, or 3.4% of the population, are currently on zero-hour contracts.

🏖 On 30 October 2023, the European Tourism Forum was held, organized by the Spanish Presidency with the European Commission. Discussions centered on 'The competitive and sustainable dimension of tourism in Europe'. Topics included sustainability indicators, training and education for workers, and balancing tourist-resident interests in high-intensity areas. HOTREC contributed, advocating for an environmental footprint for accommodation and calling for the conclusion of the Short-Term rental proposal negotiations.

💾 Booking.com, identified as a gatekeeper under the DMA, faces issues with hotels over pricing and data sharing. HOTREC and IHA express the need for transparent discussions and adherence to new obligations. With over 70% market share, Booking.com's dominance is highlighted in HOTREC's 2022 study, an updated version due in June 2024. HOTREC and European Commission have released statements regarding the situation.

🚬️ On 18 September 2024, HOTREC responded to the European Commission’s revised recommendation on smoke-free environments. The organization supports the aim to shield EU citizens from second-hand smoke, but questions the impact of extending smoke-free areas to hospitality venues’ outdoor spaces. HOTREC calls for a thorough evaluation of the potential social and economic effects on tourism and hospitality sectors before implementing such a ban.

🚨 Jeremy Frost and Patrick Wadsted of Frost Group Limited were appointed as liquidators for Viral Ventures UK after a winding up petition by a creditor. Viral Ventures UK owes over £400,000 and has ceased trading, impacting its 77 staff and over 2,500 clients with prepaid events. Karen’s Diner, part of Viral Ventures, retracted UK expansion after closing all but its London Angel site. They planned a summer pop-up tour from June to September. Clients with deposits for future events should contact credit card providers for potential refunds.

🏡 HOTREC, representing European hospitality, announces its move to a new office at Square de Meeûs 23, Brussels, in the EU quarter, near the European Parliament. Roberta Metsola (EPP, Malta) remains the President of the European Parliament after MPs gather in Strasbourg for the plenary session. The July newsletter mentions the upcoming collaboration on key EU policies affecting tourism and hospitality, and includes an interview on the Hungarian Presidency. Activities will resume in September after a summer break.

📝 The EU Packaging and Packaging Waste Regulation (PPWR) deal approved by EU ambassadors raises HOTREC's concerns about the balance between environmental goals and industry needs. The Digital Markets Act's (DMA) implementation is key as there are issues with Google's search visibility for direct suppliers, paralleled by Booking.com's impending gatekeeper status designation. Labour shortages in the hospitality industry prompt the EU to present an action plan on Labour and Skills, while the EU Talent Pool proposal seeks to improve labour mobility. Meanwhile, HOTREC prepares for its General Assembly in Budapest on April 24-26, 2024.

🏡 In NYC, Airbnb listings plummeted by 83% to 3,700 in August 2024, following nearly a year of strict regulations. This decline impacts travelers with limited lodging options and hosts facing financial challenges. Despite the drop, Airbnb anticipated $85 million in net revenue from New York for 2022. The company urges easing of the rules as rents soar and affordable accommodations become scarce.

📊 Booking Holdings, facing new regulations enabling hotels to offer rates lower than on its platform, could see its dominance in the European market wane. As of September 9, 2024, the repeal of parity clauses in Europe allows direct bookings to flourish, potentially increasing Booking.com's marketing costs and impacting its earnings. Despite Booking's strong past performance, future earnings may slow with more competition and higher expenses.

💰 The 80/20 labor rule was abolished by the Fifth Circuit Court of Appeals this month, branded “arbitrary and capricious.” Originally enacted under Obama, rescinded by Trump, and revisited with clarifications under Biden, the rule restricted employers to pay a subminimum wage ($2.13 per hour) for tip-earning tasks. A tipped employee exceeding 20% of their workweek on non-tip tasks, or 30 consecutive minutes, couldn't receive a tip credit. Businesses now revert to the baseline tip credit rule unless state law dictates otherwise. Labor law changes over administrations cause operational complexities for business owners. Six states have their own 80/20 rules. The Department of Labor is unlikely to reintroduce the same rule but may seek other methods to regulate tipped employee pay following legal precedents set by Loper Bright Enterprises v. Raimondo and the overruling of Chevron deference.