From the desks of the Hotel News Now editorial staff:
- Long-term economic impacts expected from layoffs
- Congress to take another stab at stimulus
- NYC hoteliers challenged by quarantine rules
- Protests sparked by homeless hotel evictions
- Delta latest travel company to turn to loyalty for cash
Long-term economic impacts expected from layoffs: Increases in retirements and the shift of temporary furloughs to permanent layoffs for industries like hotels are the first signs of “longer-term damage to the U.S. labor market,” Reuters reports.
The news agency notes a long-term contraction to the workforce could slow economic growth going forward.
“In the first few months of the recession we were much more focused on how many jobs could come back, how many jobs could be preserved,” Kathryn Anne Edwards, a labor economist at RAND Corp., told Reuters. “Now the question is really how much damage has this done.”
Congress to take another stab at stimulus: While both Democrats and Republicans have publicly stated the need for some sort of economic stimulus, the two sides have been unable to agree on legislation to that effect. Now Bloomberg reports the session that begins today could be Congress’ best chance to get something done as both sides have election-related pressures.
“Among the unlikely events that could now break the deadlock: President Donald Trump changing tack amid alarm about poll numbers, a sudden reversal of economic indicators that have recently trended upward, and (Nancy) Pelosi or Senate Majority Leader Mitch McConnell facing a revolt by their own vulnerable, moderate members,” the news outlet reports.
NYC hoteliers challenged by quarantine rules: When New York Mayor Bill de Blasio signed an executive order requiring travelers from 30 restricted states to self-quarantine for two weeks before accessing lodging in the city, it created a new layer of bureaucracy and challenges for hoteliers, HNN’s Dana Miller writes.
Sean Hennessey, founder and CEO of Lodging Advisors and clinical assistant professor at NYU’s Jonathan M. Tisch Center of Hospitality, said that even though hoteliers aren’t required to verify information from travelers, the mandates do require new processes and training.
“There could be a challenge based upon being able to present the information in a number of different languages since New York is such a multilingual hotel market,” he said. “It also raises questions about how to process or deal with advanced deposits, non-refundable reservations.”
Protests sparked by homeless hotel evictions: The Lucerne Hotel was the site of demonstrations over the weekend after 300 homeless men were told they soon had to leave the property due to threats of lawsuits from neighbors, CBS2 in New York reports. The homeless men were being housed at the property due to COVID-19, but residents near the Lucerne complained about “an increase in crime and quality-of-life issues.”
The eviction of the homeless is temporarily halted by another lawsuit, with the Legal Aid Society and the Coalition for the Homeless moving to block it.
Delta latest travel company to turn to loyalty for cash: With demand in the travel industry persistently low, Delta Air Lines has announced plans to leverage its SkyMiles loyalty program to raise $6.5 billion, according to The Wall Street Journal.
“Delta said on Monday that it will issue a private-notes offering and enter a term loan facility backed by the program, its biggest fundraising yet as it looks to build its war chest,” the newspaper reports, citing CFO Paul Jacobson. “While Delta has raised $16.5 billion since the start of the pandemic, the carrier is still bleeding about $27 million in cash a day.”
Compiled by Sean McCracken.