Regulatory and Legal Affairs

🛡 Gwen Mills, president of Unite Here, a labor union with approximately 275,000 members in the US and Canada, discusses the ongoing hotel worker strikes for improved wages, workloads, and staffing, which were cut during the COVID era. Unionized workers are striking in cities with high living costs, such as San Francisco, Seattle, Honolulu, Boston, and Baltimore. The hospitality industry has recovered from the pandemic, with hotel owners making record profits, yet workers' wages have not kept pace. Mills emphasizes the need for respect and asserts that one job should be enough to live on. The strikes aim to address the gap between soaring room rates, which hit record highs with $100 billion in gross operating profits in 2022, and the quality of service and labor treatment. The conversation touches on the challenges faced by housekeepers, bellmen affected by operational changes, and the broader economic factors influencing wage demands. Unions are calling for re-investment in the workforce to maintain high hospitality standards amidst changing hotel ownership dynamics, where detached investors focus on bottom-line profits.

🏠 Alexandros Vassilikos was unanimously re-elected as President of HOTREC in Warsaw. Morten Thorvaldsen (Norway) became Vice-President, Adrian Cummins (Ireland) Treasurer, and Sami Nisametdin (Finland) Chair of SSD. European hospitality leaders discussed EU priorities, sustainability, digital trends, and policies impacting the industry. HOTREC's next General Assembly will be in April 2025 in Copenhagen, Denmark. For media, contact Jasper Dober at [email protected]

💳 Legal aimed to reach 100,000 customer enrollments in their loyalty program by the end of 2024. Enrollment rates were initially high but began to decrease, leading Legal to seek assistance from the Paytronix Strategy & Analytics team to revitalize the program and meet their enrollment target.

📝 Isabella Vincenza, former salesperson at CloudKitchens, filed a discrimination and sexual harassment lawsuit, alleging wrongful termination, a hostile work environment, and unfair pay practices. Vincenza, who was fired in July 2023, claimed her accounts were reassigned after maternity leave, and faced insinuations of being let go for taking leave. CloudKitchens denies the claims, citing an internal review. The company, led by Uber co-founder Travis Kalanick, has a history of lawsuits including deceptive business practices and discrimination, with several filed in 2022 and a class action filed in August 2023.

🏙 Saudi Arabia will eliminate hotel licensing fees starting September 4, 2024, as part of the Tourism Investment Enabler Program. This move, aimed at boosting luxury tourism, aligns with the kingdom's Vision 2030 to diversify its economy and enhance tourism's GDP contribution. STAAH, a channel manager, responds by expanding in Saudi Arabia through partnerships, optimizing distribution across online platforms. Hotels can now invest more in guest experiences and marketing to capitalize on tourism growth.

🚨 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.