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1. US GDP Grew 1.3% in First Quarter
The latest data from the U.S. Commerce Department shows a stark drop in economic growth during the first quarter compared to the end of 2023. The New York Times reports the first quarter saw a 1.3% increase in gross domestic product, compared to a 3.4% increase during the fourth quarter of 2023.
"The preliminary data fell short of forecasters’ expectations, but economists at the time were largely unconcerned, arguing that the headline GDP figure was skewed by big shifts in business inventories and international trade, components that often swing wildly from one quarter to the next," the newspaper reported. "Measures of underlying demand were significantly stronger."
2. American Airlines Fires CCO After Corporate Customer Backlash
American Airlines Group fired Chief Commercial Officer Vasu Raja after concerns the company's sales strategy was alienating corporate customers, Bloomberg reports. That conclusion was drawn from a Bain & Co. review of its marketing strategy as the airline lags competitors United and Delta.
Raja had overseen a program internally dubbed "modern retailing" aimed at getting more direct business, but corporate clients and travel managers complained American Airlines' tech systems weren't sufficient to support the new strategy.
“Modern retailing is the future of airline distribution,” American’s CEO Robert Isom said. “But we moved faster than we should have, and we didn’t execute well.”
3. A Look at How Summer Demand Is Shaping Up at One Hotel
As hoteliers eagerly await the height of the summer travel season to see how it might change from recent years, HNN's Bryan Wroten spoke to the general manager of the Hyatt Regency Monterey Hotel and Spa on Del Monte Golf Course to unpack how its demand mix is shifting this year.
GM Kevin Ellis said he foresees a dip in group and a jump in drive-to demand to even out the demand mix.
“Perhaps we're seeing a little bit of rate erosion, but perhaps trading that for a couple of points in occupancy, so [revenue per available room] seems to be growing year over year,” he said.
4. Extended Stay Outpaces Broader Hotel Demand
The Highland Group's latest look at the extended-stay segment shows performance metrics outpaced the broader hotel industry in April with the strongest monthly room revenues in nearly a year. Jumps in both average daily rate and revenue per available room reversed a monthslong trend of declines.
“The performance of extended-stay hotels in April reestablished the segment’s long-term trend of increasing its market share of total hotel supply, demand and room revenues,” said Mark Skinner, partner at The Highland Group.
5. Boeing Set To Outline Improvements to FAA
Reuters reports Boeing is set today to meet with officials from the U.S. Federal Aviation Administration to outline their improvements in quality and training. Today is the deadline for the company to outline a comprehensive plan for "systemic quality-control issues" set by the FAA.
The agency had barred Boeing from expanding 737 MAX production after a door-panel blowout in January.