Regulatory and Legal Affairs

🛏 On July 18, New York City Councilwoman Julie Menin proposed Int. No. 991, with revisions introduced on August 2 that fail to address critical issues for hotel stakeholders. The bill mandates direct employment for housekeeping, room attendance, and maintenance staff by hotel owners, prohibits subcontracting, and may force some hotels to close or be sold. The American Hotel & Lodging Association warns of catastrophic consequences, including hotel closures, mass layoffs, and damage to New York’s economy and tourism.

📦 GMB and Uber Eats have established a partnership to discuss courier issues quarterly in the UK, aiming to enhance health and safety, engagement, and fair pay. Couriers will have GMB representation if they lose app access. The deal builds on a 2021 agreement between GMB and Uber, which resulted in thousands of drivers gaining union representation. Couriers must join GMB separately for representation. Deliveroo made a similar deal with GMB in 2022, covering 90,000 riders.

📌 The Bank of England cut the borrowing rate by 0.25% to 5% from 5.25% on 1 August, following stable 2% inflation in June. The Night Time Industries Association (NTIA) CEO Michael Kill called it a significant step for the hospitality sector, struggling with high interest rates post-pandemic. Bank Governor Andrew Bailey cautioned against expecting large cuts soon, prioritizing low inflation for economic growth. UKHospitality urges further rate reductions and business rate reforms for the sector's recovery.

📌 Senate Committee on Commerce, Science, & Transportation approved the Hotel Fees Transparency Act (S. 2498) on July 31, which mandates transparent fee displays throughout the lodging industry. The House passed similar legislation, the No Hidden FEES Act (H.R. 6543), on June 11. Led by Sens. Amy Klobuchar (D-Minn.) and Jerry Moran (R-Kan.), AHLA supports these bills advocating for a single fee display standard. Only 6% of U.S. hotels charge mandatory fees, averaging $26 per night. The bill now moves to a full Senate vote.

🏨 The U.S. Senate Committee approved the Hotel Fees Transparency Act on July 31; full Senate vote pending. The bill, introduced by Sens. Amy Klobuchar and Jerry Moran, aims to require clear display of mandatory fees in hotel bookings, following the U.S. House's approval in June. AHLA reports only 6% of U.S. hotels charge an average mandatory fee of $26/night. Hyatt faced lawsuits in 2023 for hidden fees, while Marriott agreed with Texas to display "resort fees" prominently. Hilton is also enhancing fee transparency.

🌮 Yum! Brands plans to implement Voice AI across hundreds of Taco Bell drive-thrus in the U.S. by the end of 2024. Currently, the tech is in over 100 locations across 13 states. Benefits include improved order accuracy and reduced wait times. A two-year testing phase has shown positive results. KFC Australia is also trialing Voice AI. Yum!'s 2023 digital sales neared $30 billion, with digital channels accounting for over 50% of first-quarter sales in 2024.

📌 The first comprehensive Junk Fee Law in the United States became effective on July 1, 2024, in California, mandating upfront disclosure of total prices for goods or services. A webinar on July 18, 2024, by myLawCLE, covered updates on California and federal regulations on junk fees, including SB 478, SB 1524, and AB 537, as well as HR 6543 and S 2498. The program provided insights for sectors like hotels and restaurants and discussed penalties and legal defenses. For more information or access to an on-demand recording, contact [email protected]

💳 Integrated payment systems enhance hotel and restaurant experiences by providing seamless transactions, automatic data updates, and advanced security features. Hotels benefit from connectivity with property management systems (PMS) and point of sale (POS) systems for real-time data exchange. Guests enjoy multiple payment options, including Dynamic Currency Conversion (DCC) and tokenized card details for secure transactions. Hospitality businesses gain operational efficiency and detailed analytics for informed decisions.