Hotel Junk Fees, Marriott Earnings and Norwegian Cruising Optimism
Skift Take
Key Points
- Marriott is optimistic about growth despite challenges from China's economy and the U.S. election.
- The U.S. Senate committee has advanced the Hotel Fees Transparency Act to ensure all mandatory fees are displayed upfront.
- Norwegian Cruise Line reports strong guest spending with a significant increase in pre-cruise bookings.
Summary
Marriott remains optimistic about growth despite some economic challenges, including a slowdown in China and potential impacts from the U.S. presidential election. A U.S. Senate committee has advanced the Hotel Fees Transparency Act, which requires hotels to display all mandatory fees upfront. Norwegian Cruise Line reports strong guest spending, particularly on onboard amenities and pre-cruise bookings, which have increased by 15%.
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Episode Notes
Marriott executives are optimistic they’ll see growth throughout the year despite emerging headwinds, writes Senior Hospitality Editor Sean O’Neill.
CEO Anthony Capuano said the company saw strong travel demand during the second quarter. Marriott said it expects its revenue per available room — a key hotel industry metric — to grow between 3% and 4% this year. But that’s down slightly from a previous forecast of up to 5%. And O’Neill notes Marriott faces several challenges, such as China’s struggling economy and the U.S. presidential election’s likely impact on travel patterns in November.
Next, a U.S. Senate committee has advanced a bill that would create a national standard for hotel pricing in the U.S., writes Senior Hospitality Editor Sean O’Neill.
The Hotel Fees Transparency Act would require hotels, short-term rentals and online travel agencies to display the total price of a stay, including all mandatory fees, upfront. The bill now awaits a full Senate vote, which would bring it one step closer to becoming law.
The American Hotels & Lodging Association has come out in support of the bill, which O’Neill notes is a reversal of its long-time stance opposing legislation around so-called junk fees.
Finally, Norwegian Cruise Line executives haven’t seen a reduction in guest spending, writes Global Tourism Reporter Dawit Habtemariam.
Spending on Norwegian Cruise ships remained strong in large part due to onboard amenities such as specialty restaurants while pre-cruise bookings for amenities were up 15%. Chief Financial Officer Mark Kempa said the company benefits from having more time to sell products to guests than hotels do, for example.
In addition, guests tend to book cruise trips much further in advance, making it easier for Norwegian Cruise to market onboard activities.
Photo Credit: A bell sits on a hotel counter in front of three staff. Adobe Stock / davit85
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