Week 16 - Tax Reforms, Credit Card Fees & Over tourism
Week 16 - Tax Reforms, Credit Card Fees & Over tourism
In the good spirit of the hospitality industry everything is happening everywhere all at once. Check out more below!
TLDR: Too Long Didn’t Read
The Solar Eclipse indeed brought more than just a celestial spectacle—it tripled U.S. hotel performance figures along its path 🌞🏨. Meanwhile, Amsterdam's new hotel restrictions signal a move to combat overtourism, potentially reshaping the city's hospitality landscape 🇳🇱🏨.
In other news, Turkey's hospitality sector anticipates robust growth 🇹🇷🏨, and a comparison between Michelin ratings and online reviews highlights differing perspectives on Paris's top hotels 🌟🗼. Additionally, proposed tax reforms in the U.S. could significantly boost hospitality investments 💼💰, but the credit card industry lobbies against fee decreases, citing potential negative impacts on travel 💳❌.
Accor's CEO addresses global crises impacting the hospitality industry 🌍💼, while academia explores the role of robotics and fake reviews 🤖📚. India's upcoming elections prompt discussions on digital influence and legislative support for Ukraine in the U.S. House of Representatives 🇮🇳🗳️🇺🇦.
Finally, tips and tricks cover battling fake hotel reviews and debunking social media myths in the hospitality industry 💡🏨📱.
0. News snippets
Not important enough to expand on, but worth hearing about
Radison Blu giant indoor acquirium blew up a couple of months ago in Berlin, the replacement? A hanging garaden of course! | Google Maps will be offering more “Sustainable” options when looking on their travel platform |
0.5 Follow up
Where we follow up on news from previous weeks
Solar Eclipse: U.S. Hotel Performance
Solar Eclipse is over, did it make a difference for hotels? Well it brought more than just awe and oddities; it tripled U.S. hotel performance figures across the path of totality. This celestial phenomenon turned ordinary locations into tourist hotspots overnight, but what happens when the sun shines again? Not a very sustainable form of growth, but an opportunity one should definitely not miss. Dive deeper into the eclipse’s impact here.
Amsterdam: New Hotel Restrictions
As if trying to limit airport flights wasn’t enough, Amsterdam introduces stringent restrictions on new hotel developments in a bold move to curb over tourism. This policy could reshape the city's hospitality landscape, prioritizing quality over quantity. Just like Barcelona its a purely political decision driven by local’s dissatisfaction with the annoying tourists. Not good, not bad, just what it is. Learn more about the new regulations here.
1. Main Hospitality News
Core news related to the industry
HVS: Turkey's Positive Outlook
Turkey's hospitality sector beams with a robust positive outlook, much like a beacon of hope in regional tourism. A recent HVS report highlights the surge in investment and visitor numbers anticipated to continue growing. Something to last? The detailed analysis suggests that strategic developments and government incentives are setting the stage for a sustained boom. Read more about Turkey’s tourism dynamics here.
Paris' Best Hotels: Michelin vs. ACTUAL Online Reviews
In a riveting comparison of elegance and expectations, Paris's top hotels find themselves under the Michelin microscope versus the raw scrutiny of online reviews. The clash between professional accolades and real-time guest feedback poses a quintessential question: what truly defines the best? While Michelin stars may glitter with prestige, online sentiments provide an entirely different picture. Almost like the movie critiques often do not match what regular people actually watch. Explore the full analysis here.
Cornell Study: Tax Reform's Impact on Hospitality
A unique study by Cornell’s School of Hotel Administration reveals that proposed tax reforms could significantly boost U.S. hospitality investments. The study praises the potential for major economic uplift from these changes. Who knew less taxes benefits businesses and their bottom line. Examine the study’s findings here.
Credit Card industry lobbying to NOT decrease their fees
While aimed at reducing exorbitant swipe fees—which collectively amount to approximately $93 billion annually—the legislation is seen by the credit card companies as a double-edged sword (who knew!?). Industry insiders argue that while lowering fees might benefit merchants, it could also undermine credit card rewards programs, potentially reducing travel by discouraging spending through these incentives. The U.S. Travel Association underscores the possible unintended consequences, “fearing” a significant dip in travel activities which could lead to a loss of about $4.3 billion in economic output. Hmm either the industry saves 93 billion in fees, or a long overdue oligopoly won’t be able to give out minuscule discounts to frequent travelers. Hard choice to make... Read more about the industry’s stance and the bill’s implications here.
Accor CEO on Global Crises
In an outspoken critique, Accor’s CEO decries the global political and economic mess impacting the hospitality industry. His call for a unified strategy to navigate these tumultuous times resonates as a stark reminder of the leadership challenges ahead. After the Accor stock dropped 10% from its peak in march (as for most other stock like Marriot & Hilton), it definitely hard in this political “turmoil”. Follow the CEO’s commentary here. While an entire paper came out studying how IHG was trying to innovate after COVID, its stock also dropped by 11%.
2. Externalities
Econimics, finance, geopolitics. All have an impact on the hospitality sector.
India Elections 2024: Digital Influence on Politics
As India gears up for its 2024 general elections, the role of digital media in political campaigns becomes increasingly scrutinous. Experts predict a high-tech election battle where digital platforms could turn the tide. Biggest democracy in the world does not joke around. For one, the elections start on the 19.04 and end 01.06. Read more about the digital dynamics in Indian politics here. On the other hand, due to the shere size of the country, things happen like riots that cause a rerun (something westerns might be more familiar with). Overall when the largest democracy in the world votes for their own future in the coming years, we should at least listen.
U.S. Support for Ukraine: A Legislative Perspective
The House of Representatives' recent decision to extend further aid to Ukraine highlights the persistent geopolitical complexities in Eastern Europe. The war is going to keep going and US is at least partially funding the “party”.
3. Academia
Scientific papers related to the topics above. For those who want to know for sure ;)
Robots, Robots & Robots
Quite a few papers were released this week. At least alone on the topic of robotics in the industry. For one, when guests encounter robots, they can be more indulgent. Service robots can increase guest satisfaction in apparently embarrasing service encounters. Finally, an entire paper predicting service experiences by 2050 (guess what? Robots!).
4. Readables
Books, podcasts & the big stuff.
India and its elections
A bit of an unusual recommendation, but “dw” has created a whole breakdown of news explaining the Indian election and all its happenings for us innocent westerners. Several news & analysis around the biggest election of the year, for those who are interested of course! On top of that we can recommend “India After Gandhi” a book about the history of India, actually written by an Indian (a rare occurrence if you go to most western book shops).
5. Tips & Tricks / Tools & SaaS
Any new software you can use? Industry tricks you missed?
The Impact of Fake Hotel Reviews
The explosion of fake hotel reviews has stirred a significant debate about credibility in the digital age. With millions of fabricated critiques flooding platforms like TripAdvisor, the integrity of online content is under severe scrutiny. How can consumers trust what they read online? The article below attempts to answer that, definitely with out any secret ads at the end of it! Read about the battle against fake reviews here.
Social Media Myths debunked
In the digital era, hotels are debunking social media myths to effectively harness its power for engaging travelers and boosting bookings. Misconceptions such as the necessity to be on every platform or that social media appeals only to the youth hinder optimal utilization. This blog corrects these myths and offers strategies like targeted platform presence and authentic content to maximize engagement and drive loyalty among diverse demographics including Gen X and Baby Boomers. Read more about using social media effectively in the hotel industry here.