NEW YORK -- The hotel industry's ongoing disputes with the federal government and online travel agencies resurfaced during a CEO leadership panel at the International Hotel, Motel & Restaurant Show at the Javits Convention Center. It crystallized in an audience member asserting, "The truth is that OTAs screw us, and the government screws us with over-regulation and taxation."
The audience member was Anuraag Mullick, chairman of the Days Inn Franchise Advisory Committee, who went on to say, "This is ridiculous. Major cities like New York and Chicago will do well. What about the heartland? The problem is that this industry is too nice. We need to put these people [politicians] on notice. We need to put the White House on notice. We also need to put OTAs on notice."
Later, Mullick told Travel Weekly that his gripe with the OTAs revolved around the ongoing dispute about who should pay local taxes: hotels or OTAs.
The response from panelists was positive. James Abrahamson, CEO of Interstate Hotels and Resorts, a major management company, said, "I'm on the [American Hotel & Lodging Association] governmental affairs committee, and our No. 1 issue is OTAs. We're very concerned about them and need to get passionate about that issue."
Abrahamson added: "It is critically important to advocate for change in Washington, D.C., because the industry is under fire. The order this week by the administration to reduce [spending in] government travel by 20% is just wrong in singling out travel. ... Government is not afraid of us, and we have to have a louder voice in Washington."
Jim Evans, CEO for the Corporation for Travel Promotion, which markets the U.S. as a travel destination, said, "In many ways [the travel industry is] seen as irrelevant. We are not feared like groups like the National Rifle Association. We're bigger than almost any other industry, but we're quiet."
Marlene Colucci, who as executive vice president of public policy for the AH&LA serves as the association's chief lobbyist, was in the audience and stepped up to the microphone to respond. "The good news is that things are changing," Colucci said. "We have become more aggressive. We have defeated the OTAs on several occasions. As for the government regulations, we have filed a number of lawsuits to counteract those."
Another ongoing issue for the lodging industry is the difficulty international visitors encounter when they arrive in the U.S. The two biggest issues in this regard are long delays in the visa process and the obstacles when passing through immigration.
"We finally have somebody at the State Department who gets the importance of tourism," Abrahamson said. "Thomas Nides [deputy secretary of state for management and resources] works directly for Hillary Clinton, and he does get it."