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1. Gas Prices Fall Ahead of Memorial Day Weekend
The average U.S. cost of regular gasoline fell to $3.58 a gallon last week, down from $3.67 last month. When adjusted for inflation, the price is similar to last year's and is about 5% below pre-Memorial Day cost since 2000, the Wall Street Journal reports.
"Regional fuel prices often move independently based on factors such as storms, taxes and refinery maintenance. Over the past month, however, gas stations monitored by AAA have lowered prices or held them steady in all but six U.S. states. Motorists in Las Vegas, the Phoenix area and Sacramento, Calif., are seeing some of the steepest cuts," the newspaper reports.
AAA projects a record 38.4 million people will travel 50 miles or more by car this Memorial Day weekend.
2. PwC Revises 2024 Hotel Forecast
PwC decreased its projections for average daily rate and revenue-per-available-room growth in its US Hospitality Directions: May 2024 report. PwC is now projecting 1.2% growth in ADR and 2.2% growth in RevPAR for full-year 2024, down from projections of 2.4% and 2.7%, respectively, in its November report.
The decrease in its projections falls on leisure demand moderating in the U.S., due in part to international inbound travel not yet picking up and domestic travelers still seeking international trips. Other factors, such as the economy and the November presidential election, also play a role in the decreased projections.
"Continued economic uncertainty, an upcoming election and continued geopolitical tensions are expected to impact hotel performance in the US through 2025," said Warren Marr, U.S. hospitality and leisure managing director for PwC.
3. How the Upcoming UK General Election Might Affect Hotels
U.K. Prime Minister Rishi Sunak announced on Wednesday that the country will hold a general election on July 4. Kate Nicholls, CEO of UKHospitality, said the election brings uncertainty, but also an opportunity for change in the hotel industry, HNN's Terence Baker reports.
"There is a sense of being in limbo, a sense of being in waiting, that we need something to change the game, to be game-changing, to happen to be able to unlock that potential, and I think the general election this year could be that transformative act," she said.
4. Strong Global Business Activity Could Pause Rate Cuts
Business activity is picking up in Asia and Europe this month, which could lead to central banks deciding not to cut interest rates, Reuters reports. Metrics for business activity in Germany, India and Japan have seen positive growth in May.
"Central banks will start cutting but then they will continue to reevaluate the picture and in our view will realize at the end of the year or the beginning of next year that inflation is stickier than expected," said Vincent Stamer, economist at Commerzbank. "So they may not complete that rate-cutting cycle."
5. New Jersey Train Service Faces Power Outages
Fallen overhead power cables in Kearny, New Jersey, led to an outage that paused train services, stranding commuters in several different cities, the New York Times reports.
The power outage, which began at 5:05 p.m. on Wednesday, disrupted service between New York and Newark, and left some passengers stranded in Philadelphia.
New Jersey Transit said delays and cancellations on Thursday morning were "due to residual impacts resulting from crew availability and equipment that was out of position as a result of last evening's service disruptions."