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5 Things to Know: 19 July 2016

From the desks of the Hotel News Now editorial staff: Choice launches rate program for loyalty members Concur report explains business travel trends Japan’s Nikkei rises for sixth straight day Hoteliers talk employee ownership Austin hotels adjust to not having Uber, Lyft services
By the HNN editorial staff
July 19, 2016 | 7:36 P.M.
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Choice launches rate program for loyalty members: After first announcing the move in May, Choice Hotels International has launched its direct-booking discount for members of its loyalty program, Choice Priveleges. Beginning on 20 July, Choice Privileges members will be able to access discounted rates by booking directly through the company’s website and through the Choice mobile app, according to a news release.

Travelers who book direct will have access to rooms rates up to 7% off the best available rate. Additional perks include Choice will reward guests who find a lower rate on another website with a $50 Visa gift card and the brand will match the lower price found, according to the release.

Choice was among several major hotel companies—including Marriott International, Hilton Worldwide Holdings, Hyatt Hotels Corporation and InterContinental Hotels Group—who in the spring announced lower rates to loyalty members who booked direct.

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Concur report explains business travel trends: Concur’s “State of Business Travel 2016” report was released Monday at the Global Business Travel Association Convention and highlights business travelers’ spending in 2015. The report uses six business travel personas to illustrate its compiled data.

“More than half of all business travelers are ‘Cautious Carls,’ but Carls account for only 14% of total business spend,” the release said.

“Savvy Sams” and “Jet Setter Jeremys” are more-experienced business travelers with expensive taste while “High-tech Hannahs” are more budget-conscious.

Home-sharing services are becoming more popular in the business travel sector, and Concur data shows a 56% increase in usage from Q1 2015 to Q2 2016, according to the release.

In 2015, business travelers spent the most in U.S. cities such as New York, Chicago and San Francisco, and outside the U.S., business travelers spent the most in the United Kingdom, Canada and China.

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Japan’s Nikkei rises for sixth straight day: Japan’s Nikkei stock index rose for the sixth straight day in a row on Tuesday, at the same time as the yen dropped and Wall Street saw a rise, Reuters reports.

The Nikkei increased 1.4% to 16,723.31 points. It reached its highest on 9 June at 16,726.71 points, according to Reuters.

The JPX-Nikkei Index 400 rose 0.9% to 11,939.98 points.

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Hoteliers talk employee ownership: Hoteliers discussed the pros and cons of employee stock ownership plans, or ESOPs, which can be challenging when it comes to the ongoing reporting and accounting requirements that come along with the process, HNN’s Sean McCracken reports.

Hoteliers explained the various structure and purposes for ESOPs, the impact on recruitment and retention as well as the costs and administration.

“It’s highly complex, highly regulated and very technical,” said Jim Butler, founding partner with Jeffer Mangels Butler & Mitchell and chairman of the law firm’s global hospitality group. “Anything you do, you have to call the experts and have them tell you if you’re able to do it. It’s not like sitting down once a year with your compensation committee to talk about giving out Christmas bonuses. You need to make sure everything you do is an approved transaction.”

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Austin hotels adjust to not having Uber, Lyft services: Hoteliers in Austin, Texas, are adjusting to finding new methods of transportation for guests after Uber and Lyft services left the city in May, the Austin Monitor reports.

Other ride service startups have entered the city and applied for permits to operate in Austin, and hoteliers are starting to get used to helping guests with transportation more often.

“It was difficult in the beginning to find any sort of transportation for our guests,” said Nick Houston of the Radisson in downtown Austin. “But in the months since Prop 1 failed, we’ve started using the companies that are here today. And a lot of the companies that were already here have stepped up their game and added more drivers and vehicles, so we’ve been able to start using them as well.”

Other hoteliers are not satisfied with the citywide transportation arrangement.

“In my opinion, in a city like Austin that is growing as fast as we’re growing, the transportation system is a shame,” the W’s Leo Rossini told the newspaper.


Complied by Danielle Hess.