Editor's Note: Some linked articles may be behind subscription paywalls.
1. Los Angeles Hotel Union Vows More Strikes
Southern California hotel operators and workers, who have been on intermittent strikes since July 1, rejected a proposal during their first bargaining session this week, the Los Angeles Times reports. During the session, hotel representatives said Unite Here Local 11 failed to "bargain in good faith" for the more than 60 hotels it represents.
Keith Grossman, an attorney representing a coalition of 44 Southern California hotels, said the proposal included an improved wage offer. In rejecting the porposal, the union has vowed that more strikes will occur at hotels across Los Angles and Orange counties.
“The union made no counteroffer. We are extremely disappointed that Local 11 refuses to bargain in good faith,” Grossman said in a statement. “Local 11 continues to signal that it is more interested in its political agenda than negotiating to reach an agreement.”
Kurt Petersen, co-president of Unite Here Local 11, said the wage proposal “moved backwards."
2. Visitors to Japan Surpass 2 Million
Inbound visitors to Japan increased to 2.07 million in June, surpassing the 2 million mark reached for the first time since February 2020, according to figures from the Japan National Tourism Organization, Reuters reports. Travelers are particularly taking advantage of the weak yen.
"The influx is helping stir demand-driven inflation in the world's third-largest economy, as hotels, restaurants and retailers find they can charge more without denting sales," the news outlet reports.
Inbound travelers from the U.S., Europe, Australia and the Middle East have already risen above 2019 levels. Visitors from China, however, are still far below pre-pandemic levels.
3. Group Travel No Longer Discretionary
Speakers at the recent HSMAI 2023 Revenue Optimization Conference Americas said group travel is roaring back, in large part because companies are no longer looking at meetings and events as discretionary, Hotel News Now's Trevor Simpson reports.
ALHI-Associated Luxury Hotels International President and CEO Mike Dominguez said associations in particular are coming back strong.
“The reason we have not seen much of a slip on the group side right now … this is the first time that we’ve had a downward projection of economic conditions where travel, meetings and events, they’re not seen as discretionary,” he said. “That has a lot to do with the pandemic when you talk about companies struggling with productivity, getting employees on board, a lot of new employees. ... There is a need to bring people together.”
4. Indian Travelers Outweigh Chinese in Southeast Asia Demand
Airlines and hospitality chains in Southeast Asia are leaning on India's middle class and its rising spending power as the tourism sector navigates China's slow reopening, Reuters reports.
"For a decade or so, the sector was fueled by China but official data from four Southeast Asian countries shows a weak recovery with the number of Chinese visitors in May at least 60% lower than the same month in 2019," the news outlet reports. "A long-term increase in Indian tourists would lead to a recalibration of airline capacity, hospitality offerings and tourism operators — early signs of which are underway, according to industry members."
5. Airlines Respond to Surge in International Bookings
In the next few months, air carriers such as United Airlines will be beefing up routes to Asia as demand for international flights have surged, CNBC reports.
“In general, the Pacific is as strong if not stronger than the Atlantic is today,” said Patrick Quayle, United’s senior vice president of global network planning and alliances.
In October, United will be the first U.S. airline to operate daily nonstop flights between San Francisco and Manila. It will also add a nonstop flights between San Francisco, Taipei, Taiwan and will resume service to Tokyo's Narita International Airport from Los Angeles.