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1. Consumer confidence rises for first time this year
The Conference Board's consumer confidence index rose 12.3 points in May to 98 — compared to April’s 85.7, which was its lowest reading since May 2020. The Associated Press also reported that Americans’ short-term expectations for their income, business conditions and the job market also rose 17.4 points to 72.8. However, this figure still remained below 80, which could mean a recession still is coming.
United States President Donald Trump's tariff policies have been driving the decline in consumer confidence, and recent pullback on his originally announced plans has driven the rise in consumer confidence, said Stephanie Guichard, senior economist at The Conference Board.
“The rebound was already visible before the May 12 U.S.-China trade deal but gained momentum afterwards,” Guichard said.
2. United, Southwest make policy changes for travelers
Southwest Airlines' new checked baggage fees went into effect today as United Airlines announced a change to its check-in policy.
Southwest travelers now face fees of $35 and $45 for their first and second checked bags, respectively, the New York Times reported. The charge applies to all bookings made beginning May 28. Previously, travelers received two free checked bags. Now this perk is reserved for customers flying Business Select and top loyalty members. Additionally, passengers with a Southwest Airlines co-branded credit card will be able to check one standard bag for free.
Meanwhile, United will begin enforcing its narrowed flight check-in policy beginning June 3. According to the AP, United’s new “check-in cutoff” for passengers without checked bags is 45 minutes before departure — 15 minutes earlier than the previous cutoff. This policy now matches what United has previously required for passengers checking luggage.
3. Hospitality lawyer shares franchise agreement negotiation tips
Speaking at the Hospitality Law Conference earlier this month, Michael McGee, partner at Dentons Bingham Greenebaum, said that hotel owners have more options than just signing on the dotted line when it comes to negotiating a franchise agreement with brands.
McGee said that "due partly to the competitive evolution of the market with a focus on fostering a strong, long-lasting relationship under the franchise agreement, franchisors have become more relaxed and more open to negotiating points and changes in between franchise agreements."
CoStar News' Bryan Wroten reported on the six key provisions that McGee said franchisees should negotiate in every agreement.
4. IHG opens first Voco-branded resort
IHG Hotels & Resorts opened the Voco Quang Binh Resort – By IHG in Vietnam, marking the first resort for the brand. It's the second Voco property in the country.
The resort features 68 suites and beachfront villas, a 17-room spa, two pools and two dining and bar concepts. Voco Hotels by IHG, which launched in 2018, has 94 open hotels and 95 in its pipeline, including two in South East Asia expected to open later in 2025.
"This opening signals the start of our resorts expansion under Voco hotels, and we’re excited for what lies ahead," said Julie Cheesman, head of Voco hotels.
5. Whitbread names new chair
Premier Inn owner Whitbread has appointed Christine Hodgson as its new chairperson, effective September 1, according to The Standard. Hodgson, who is the current chair of Severn Trent, will replace Adam Crozier, who has been in the role since 2018.
“It’s an exciting time to be joining, as the company continues to deliver on its five-year plan, and Premier Inn’s expansion in Germany gathers pace,” Hodgson said.
The U.K. company, which also owns Beefeater restaurants, reported earlier this month that profits fell by 14% compared with the previous year. Per the article, this change was due in part to a growth strategy that Whitbread started last April, which includes an overhaul of its restaurant business.