From the desks of the Hotel News Now editorial staff:
- US inflation on the rise
- TUI won’t ‘lose’ in consolidation wave
- How some companies win at sleep
- US hotel construction up 8.3%
- Hong Kong airport protests continue
U.S. inflation on the rise: The consumer price index increased in July at what The Wall Street Journal described as a “robust pace,” spurred by increases in energy costs along with increases in “most goods and services.”
The newspaper reports inflation through the first half of the year was somewhat tepid but could be “finding its footing” after increasing a seasonally adjusted 0.3% for the month, according to U.S. Labor Department statistics.
TUI won’t “lose” in consolidation wave: TUI CEO Fritz Joussen promised on an earnings call that his company “will not be the losers” of consolidation in the vacation industry, according to Reuters.
He said his company’s hotels and resorts are more diversified than competitors and thus well poised for strong growth.
Joussen did not comment “on negotiations with Boeing over the grounding of 737 MAX planes after two fatal crashes, which for TUI meant 15 planes of that type needed replacing with partly older and less fuel efficient ones, creating costs of €144 million ($161.22 million) in the quarter,” the news outlet reports.
How some companies win at sleep: While JD Power registered only a small portion of guests are satisfied with the hotel sleep experience, some hotel companies are proudly championing their success in terms of bed and sleep investments, HNN’s Dana Miller writes.
Ron Pohl, SVP and COO at Best Western Hotels and Resorts, said his company spends a significant amount of time researching the right mattresses to optimize guest sleep.
“We continue to evolve that mattress spec to ensure it’s the latest and greatest sleeping experience out there,” he said. “The minimum expectation of a customer is ‘I want as nice of a mattress as I have at home and if it exceeds that, we remember that.’”
U.S. hotel construction up 8.3%: The U.S. hotel industry saw an 8.3% year-over-year increase for hotel construction in July, according to the latest data from HNN’s parent company STR. The industry has 1,573 projects accounting for 205,992 rooms under construction.
In Europe, hotel construction increased 52.4%, with 1,504 projects and 192,352 rooms. The Middle East has 427 projects with 123,742 rooms in construction, while Africa saw a 1.8% decrease for rooms in construction.
Hong Kong airport protests continue: Protests at Hong Kong’s airport continue to disrupt travel early this week, with protestors blocking gates and immigration areas, according to The Wall Street Journal.
“The airport suspended all check-in, and advised people not to go to the airport,” the newspaper reports. “The status of dozens of remaining evening flights wasn’t immediately known.”
Airlines that operate in the region warn that further travel disruptions could be likely.
Compiled by Sean McCracken.