Hotel Junk Fees, Marriott Earnings and Norwegian Cruising Optimism

Skift Take

Today’s podcast looks at Marriott’s optimism in the face of challenge, the next step in junk fee legislation, and the ongoing strength of Norwegian Cruise spending.

Rashaad Jorden

Good morning from Skift. It’s Thursday, August 1. Here’s what you need to know about the business of travel today. 

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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.