Regulatory and Legal Affairs

🛫 Federal government shutdowns impact travel systems, causing over $6 billion in losses from October 1 to November 12, 2025. These 43 days saw 88,000 fewer trips daily, affecting airports and national attractions, and disrupting local economies. Essential aviation staff worked unpaid, creating operational challenges. A survey reveals four out of five Americans support paying these workers during shutdowns. Congress progresses with H.R. 6086 to ensure air traffic controllers are paid. The travel sector supports 15 million jobs, highlighting the need for stability.

🤖 Led by Amit Sharma and Anna Mattila, Penn State researchers published findings in the *Journal of Hospitality and Tourism Research* discussing the ethical implications of service robots in hospitality. Service robots now perform tasks like deliveries and semi-autonomous decision-making, raising questions about liability and governance. Companies should define robots' rights and responsibilities, adapting policies as tech evolves. Established in 1937, Penn State's School of Hospitality Management is a leader in preparing global hospitality professionals.

🏨 AAHOA, representing 60% of U.S. hotels with 20,000 members, lauds President Trump's decision to delay a tariff increase on furniture originally set for January 1, 2026. This postponement, lasting an additional year, maintains a 25% tariff to aid ongoing trade negotiations. Furniture can comprise 15–20% of hotel renovation costs, affecting small-business hoteliers. AAHOA hotels employ over 1 million workers with a $51.3 billion payroll, contributing to 1.7% of U.S. GDP.

🗺️ Booking Holdings underperformed in 2025 due to European regulations removing price parity clauses, allowing hotels to promote direct bookings. AI-driven tools are disrupting traditional travel agencies, embedding travel planning within digital ecosystems. Consumer behavior shifts and uneven demand affected Booking's commission-based model. Competitors with diversified offerings fared better. The travel industry is transitioning to AI-first experiences, challenging established players. Jan 6, 2026, marks a pivotal point for examining these changes.