5 things to know: 10 October 2019
5 things to know: 10 October 2019
10 OCTOBER 2019 9:04 AM

From the desks of the Hotel News Now editorial staff:

  • California bans small plastic bottles in hotels
  • UK hoteliers seek solutions to Brexit, labor pressures
  • US hotel results for week ending 5 October
  • Employer demand for workers softened over summer
  • US consumer prices remained the same in September

California bans small plastic bottles in hotels: California Gov. Gavin Newsom announced he signed a law that bans hotels from providing guests with small plastic bottles containing soap, conditioner or shampoo, the Associated Press reports. The law goes into effect in 2023 for hotels with more than 50 rooms and in 2024 for hotels with 50 rooms or less.

The law is aimed at reducing the amount of plastic waste in the state, the AP reports. Fines start at $500 for a first-time violation, and the amount increases to $2,000 for subsequent offenses.

Several large hotel chains, such as Marriott International and InterContinental Hotels Group, have already pledged to stop using these bottles.

U.K. hoteliers seek solutions to Brexit, labor pressures: Hoteliers attending the Annual Hotel Conference in Manchester, England, have focused their discussions on Brexit negotiations and labor pressures, HNN’s Terence Baker reports.

On top of increasing labor costs, there are fewer potential employees as there are fewer people ages 18 to 24 entering the work force next year, an issue that isn’t expected to abate until 2030, Baker reports.

“The Scottish government said last week that it needed net migration to continue if it was to see growth in its hospitality industry increase by its target of 5%,” Baker writes.

U.S. hotel results for week ending 5 October: The U.S. hotel industry reported negative year-over-year results for the week ending 5 October, according to data from STR, parent company of HNN. Occupancy dropped by 3.9% to 68.1% while average daily rate fell by 3.8% to $129.21, resulting in revenue per available room falling 7.5% to $88.

“STR analysts attribute significant performance decreases in many markets to the Rosh Hashanah calendar shift,” the news release states. “Travel and conference schedules during the comparable time period last year were not affected by the Jewish holidays.”

U.S. employer demand for workers softened over summer: The number of job openings fell year over year in August for the third consecutive month, indicating the demand for new employees has softened, The Wall Street Journal reports. The number of openings fell by 4% in August to 7.1 million.

“There are signs that we are definitely seeing a pullback,” said Nick Bunker, economist at hiring site Indeed. “Today’s numbers give credence to the argument that the labor market slowdown is driven by employer demand.”

U.S. consumer prices remained the same in September: The U.S. Department of Labor reported the consumer price index remained flat in September, its weakest reading since January while increases in food and rent were offset by a drop in prices for energy and used cars and trucks, Reuters reports. These combination of factors are “supporting expectations the Federal Reserve will cut interest rates in October for the third time this year amid risks to the economy from trade tensions.”

The economic expansion in the U.S. is in its 11th year, but it is “under threat from the 15-month old U.S.-China trade war, slowing growth overseas and a likely disorderly exit from the European Union by Britain. The trade war has undermined business investment and helped to drive manufacturing into recession,” the news agency reports.

Compiled by Bryan Wroten.

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