From the desks of the Hotel News Now editorial staff:
- Theresa May expected to postpone Brexit vote
- US holds to 90-day deadline on Chinese trade deal
- Hoteliers navigate the tight labor market
- Global economic data not showing signs of recession
- Travel industry embracing DNA tourism
Theresa May expected to postpone Brexit vote: British Prime Minister Theresa May is expected to postpone the parliamentary vote on Brexit that is scheduled to take place tomorrow, The New York Times reports. Criticism of the plan May’s team negotiated with the European Union has led many to believe the plan would fail to receive approval.
EU officials have stated the current plan is their final offer, according to the article, and should lawmakers in the United Kingdom reject it, their only other option is a hard exit on 29 March without an agreement in place. The EU’s highest court also ruled that the U.K. could cancel its decision to leave the EU and remain under the existing agreement.
U.S. holds to 90-day deadline on Chinese trade deal: The Trump administration is holding to its 90-day deadline to reach its trade agreement with the Chinese government, The Wall Street Journal reports, but if that fails, the U.S. would increase its 10% tariff on $200 billion of Chinese goods to 25%.
The two countries worked out a truce recently in Buenos Aires, the newspaper reports. The two agreed China would make large purchases of American goods and services, such as soybeans and natural gas, and China is considering lowering its tariffs on U.S. automobiles. These purchase and tariff reductions are seen as “a kind of down payment and give a boost to negotiations,” the article states.
Hoteliers navigate the tight labor market: As the labor shortage continues and employees demand high wages, hoteliers are trying to strike the balance of attracting and retaining skilled employees while also making sure expenses don’t outpace revenue, HNN’s Robert McCune, Sean McCracken, Dan Kubacki and Dana Miller report.
“As a nation, we have nearly full employment,” Klaudio Simic, VP of Operations at Provenance Hotels, said via email. “Our industry has, in the past, been able to balance wage growth with economic growth, but as the former starts to outpace the latter, everyone is feeling the pressure.”
Included in this labor-shortage package are pieces on hotel industry wage growth, whether average daily rate growth can keep up with expense growth and an infographic on wage growth versus a shrinking labor pool.
Global economic data not showing signs of recession: While stocks have declined, the gap between long- and short-dated U.S. Treasury Securities is shrinking and oil prices are falling, global economic data shows signs of only a slowdown in global growth, not a full recession, The Wall Street Journal reports.
“We find that on several dimensions, the behavior of the data over the last four quarters in the U.S., Eurozone and Japan is completely incongruous with any of the recessions that took place since 1980,” write Pierre Lafourcade and Arend Kapteyn of UBS, according to the newspaper.
While consumer spending and productivity growth usually slow before a downturn, those two factors have increased in the U.S., the newspaper reports. Japan sees employment increasing, and investment in the Eurozone continues to grow.
Travel industry embracing DNA tourism: The do-it-yourself DNA kits now available to consumers have inspired enough people to travel to find distant family that DNA tourism landed itself among Lonely Planet’s top travel trends of 2019, NBC News reports, and the travel industry is taking notice.
Travel company Go Ahead Tours has partnered with Ancestry.com to create small group tours through Europe that include DNA testing and an on-board genealogist, according to the article. After travelers receive their DNA results, they have five hours with the genealogist, who will also be on the tour the travelers take.
Compiled by Bryan Wroten.