Duff on Hospitality Law

For the first time, our weekly Update delves into the world of artificial intelligence (AI).  We’ve tried for several months now to avoid joining the chorus of voices proselytizing about the likely effects of AI, but as the reality of AI starts to set in and its potential uses become more apparent, it is impossible to avoid.  Expect to see more stories in the future on AI (and its likely legal implications) as curated by my colleague and contributor Erin Snodgrass.  I hope you enjoy.

• • Priceline’s New Head of Accommodations Outlines Her Plans for the Future.  Priceline’s new Senior Vice President and Head of Accommodations, Traci Mercer, shared her thoughts about the future of the Booking.com little sibling in a recent interview with PhocusWire.  Highlights from the recent interview include:
    • 2023 marks Priceline’s 25th year anniversary
    • North America, particularly, the United States is Priceline’s current top priority for growth
    • From a supplier perspective, both Priceline and Agoda will continue to work together – at least in North America
    • Priceline Partner Solutions (Priceline’s B2B offering) will remain a growth opportunity as Priceline seeks to leverage its recent acquisition of Getaroom

• • Expedia Calls Out Agoda’s Abusive Discounting Practices.  While we’ve grown accustomed to suppliers’ complaints over the years about the business practices of online distributors, it has been unusual to see online distributors questioning the practices of their competitors.  In a recent interview, Expedia’s CEO, Peter Kern, openly questioned Agoda’s discounting practices and characterized Agoda as “one of the worst when it comes to this sort of rate abuse.”  Historically, Agoda has acknowledged and even embraced these practices (in the name of the consumer) making clear that it will do everything it can to source any available discounted rates – including via wholesalers, whose practices, Agoda maintains, could always be better managed by their supplier partners.
    
    
  • Hotel Distribution Trends to Watch.  We’ve included in this week’s Update a recent report from IHG’s Andrea Daniels summarizing the recent thoughts and predictions of HSMAI’s Global Distribution Advisory Board regarding the future of hotel distribution. 
    
    
  • Add Hilton to the List of Hoteliers Targeted in Texas for Their Resort Fee Practices.  Just weeks ago, we detailed Texas Attorney General, Ken Paxton’s newest resort fee disclosure claims against Hyatt (following quickly on the heels of his announced settlement with Marriott).  Now, we can add Hilton to the list of hoteliers targeted by the Attorney General.  Many questioned whether the Attorney General’s own political and legal troubles (including a possible impeachment) might slow his solitary campaign, but, at least for now, those troubles do not appear to have any real effect on his approach to resort fees.