Regulatory and Legal Affairs

📦 Grubhub to pay $25 million settlement after U.S. Federal Trade Commission and Illinois Attorney General investigation into deceiving consumers on delivery fees, misleading drivers on pay, and listing restaurants without consent. Must now fully disclose delivery costs to customers, advertise driver pay transparently, and get restaurant consent for listings. FTC Chair Lina M. Khan says the action ends illegal practices and secures compensation for those affected. Settlement follows President Biden's fall 2023 crackdown on junk fees. Grubhub denies allegations but agrees to comply.

💳 "Hotel Chargebacks Explained: Fight Disputes & Save Revenue," written by Manveen Kaur, was published on Dec 18, 2024. The article outlines methods to minimize disputes, manage Online Travel Agencies (OTAs), and safeguard hotel revenue through transparent policies and technology.

📊 On 5 November 2024, a coalition led by Business Europe including HOTREC and 26 industry partners, co-signed a statement on the Corporate Sustainability Due Diligence Directive (CS3D). They urge the European Commission to prioritize relief from administrative burdens and simplify regulations for competitiveness, especially for SMEs. Key demands: a thorough competitiveness assessment, guidelines and legislation adoption 2 years before mandatory compliance or an extended transition period, and consistent rules across the EU to maintain the Single Market's integrity. The coalition recommends the EU monitor national implementations to align with the Directive.

🏠 One year after Local Law 18 (LL18), New York City hotel prices rose by 7.4%, outpacing the national increase of 2.1%. The city's rent jumped 3.4% in 11 months with downtown Manhattan median asking reaching $5,000, and vacancy rates remained unchanged at 3.4%. Airbnb guest spending averaged $260 per day, but LL18 reduced accommodation options, particularly in outer boroughs. Critics argue LL18 favors corporations over residents and small businesses, suggesting a need to re-evaluate and amend the law.

📚 On 5 November 2024, HOTREC and 26 industry partners advocated for a business-friendly Corporate Sustainability Due Diligence Directive (CS3D), requesting EU support for competitiveness of businesses and SMEs. Their main asks include a competitive assessment of CS3D, adopting guidelines 2 years before mandatory compliance or extending the transition period, and ensuring harmonized rules for the Single Market. The European Commission is urged to monitor transposition measures and coordinate with Member States to align with the Directive.

💸 TikTok Shop, the new online shopping king, launched in the US in September 2023. With an expected revenue of $17.5 billion in 2024, it offers a seamless checkout experience and deep discounts for customers. It features an Affiliate Program, live selling events, and integration with external apps, directly competing with platforms like Shopify. TikTok's parent company ByteDance must sell the app by January 19, 2025, due to US national security concerns, which could impact TikTok Shop's dominance.

🏖️ The Spanish government enacted a rule on December 2 requiring hotels to collect extensive personal data from guests over 14, including passport details and payment information. UK visitors to Spain rose by 7.1% in the first 10 months over 2023, reaching 16.5 million, with a forecast of 18.8 million by year's end. Spending by UK travelers is expected to be €23 million by year's end, a 30% increase over 2019. The winter season may see UK visitors to Spain increase by 25% over the 2019/20 season. Spain's Tourist Office plans to promote longer stays and lesser-known destinations for 2025, with events like 'Spain Talks' on April 30 and an accessible travel campaign meeting in Seville from May 19-22. After October floods, Valencia has recovered, with attractions and businesses fully operational.

💰 Holiday Extras, founded 42 years ago by Gerry and Carol Pack, has shifted majority shares to an employee benefit trust following a buyback of the founders' 12% stake out of six million shares. Control remains with management under CEO Matthew Pack, the founders' son. The company has secured a £10 million increase in its NatWest borrowing facility, now totaling £30 million, to fund European expansion and AI investment. Earlier acquisitions include Quick Parking and a new Airparks car park in Munich. Further acquisitions are anticipated.

💸 Base wages for restaurant servers reached 43% of their average paycheck, up 35% since January 2020. From 2019 to 2024, their hourly earnings, including base pay and gratuities, jumped from $18.61 to $23.88, a 28% increase. The pandemic sparked wage spikes, influenced by tip credit laws. The Biden-era 80/20 labor rule was overturned in September 2024. Labor shortages during 2021 and 2022 significantly drove up labor costs. Chicago saw the fastest four-year wage growth for servers, while Boston had the highest tipped wages, with tips comprising 76% of wages. Conversely, Los Angeles and San Francisco had tips under 40% due to a raised minimum wage to $20 an hour. ADP Research analyzed wages across 50 states from data of 100,000 restaurant servers.