Quantcast

NYC proposes regulations impacting non-union hotels

These Frequent Fliers Are Done With Loyalty Programs
JetBlue accepting Venmo as payment method for flights purchased through mobile app
United Airlines stock rallies on results, as growing demand wasn’t just about premium seats
American Halts CRJ-200 Operations
Shanghai Airlines to Launch Casablanca Route
Delta employees to receive an average five weeks of pay in annual profit sharing
Akasa Air faces DGCA heat for lapses; warning letter issued to airline's accountable manager
Indigo Eyes European Market Amid Intensifying Competition with Air India
Air India to operate daily Delhi-Prayagraj flights for Maha Kumbh
Engine maker agrees to compensate WizzAir for grounded planes
Turkish Airlines’ flights are riddled with bedbugs, passengers say
British Airways frequent flyers react to Executive Club changes
Inside the short-lived, men-only flights where kids and women were banned but cigar and pipe smoking were rife
China steps up drive to break Boeing, Airbus grip on plane market
Heathrow’s New York service clings to spot in top aviation routes
Airline praises pilots in crash-landing where both died but nearly half the passengers survived
Mexico state airline to buy five Embraer planes next year
A record number of people are expected to fly over the holidays. That's good for travel stocks, but not for passengers.
American Airlines technical issue sparks travel chaos on Christmas Eve as flights heavily delayed after being grounded
Why United Airlines has had such a stellar year despite being Boeing's biggest customer
JetBlue nixing routes between multiple major cities, reducing several others
Airline Stocks Led The Travel Industry's Record 2024 Rally. Here's What's Next.
It’s beginning to look like another record for holiday travel
Qatar Airways cleans up at the World Travel Awards
All of the strikes at European airports this winter – find out if you are affected
Meet the CEO trying to turn around Air India, the 92-year-old airline with a pile of problems
Skiplagging: Unpacking the Risky Travel Trend That Involves Tricking Airlines
Qantas engineers walk off job on one of the busiest travel days of the year
South Korea to safeguard competition after Korean Air, Asiana merger
China Southern returns to Adelaide
NYC proposes regulations impacting non-union hotels
Research
Webp txr36ytg6uuvd13i8xrjnuempd4m
Gary Leff Chief Financial Officer | View from the Wing

New York City aims to regulate non-union hotels by banning the outsourcing of key functions such as housekeeping and food and beverage services. This move is intended to make it easier for workers to unionize, as hiring full-time employees is often more expensive than contracting out specific hours.

This regulation could render non-union hotels less competitive, making it less appealing to remain non-union and facilitating the organization of hotel staff. However, increasing operational costs may force some properties out of business in a city where hotel room availability is already limited.

Several factors contribute to this tight inventory. Over 10% of hotel rooms have been repurposed to house migrants, Airbnb has been largely banned, and new hotel construction faces significant restrictions. Hotel workers' unions have an effective veto over new projects.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Despite these challenges, average room rates have increased by 22.5% since 2019, with hotel occupancy around 80% through May. This rise occurs even though business travel has not fully recovered, particularly on the coasts, while leisure destinations generally outperform major urban areas.

The hotel workers' union in New York City wields considerable political influence. It has blocked projects that would convert hotels into residential housing or homeless shelters, maintaining high rents and protecting jobs but also affecting the condition of hotels.

"The Hotel Trades Council ranked among the top independent spenders in the election cycle of 2017," reported The New York Times. "All 26 City Council candidates endorsed by the union won." Some of these officials joined powerful land use and zoning committees, granting the union significant sway over building decisions in New York.

The union argues that the bill aims to reduce crime, which seems unusual given that their members are not typically present on-site. There is skepticism about whether small hotel operators can manage security better than contracted specialists. Critics suggest that crime issues stem more from those attracted to lower-end hotels rather than from outsourcing practices.

With crime cited as a justification, the union acknowledges that higher operational costs leading to property closures might be seen positively from their perspective.

(HT: @crucker)

Organizations Included in this History
More News

Flying Food Group (FFG) has filed charges against UNITE HERE Local 11 with the National Labor Relations Board (NLRB), accusing the union of bad faith bargaining during ongoing labor negotiations.

Apr 4, 2025

Air India has announced the resumption of its operations from Bangkok, maintaining its schedule following a devastating earthquake that resulted in significant loss of life.

Apr 4, 2025

Lufthansa has announced the launch of codeshare flights with ITA Airways, expanding travel options across more than 100 European routes.

Apr 4, 2025

KLM Royal Dutch Airlines has announced the addition of six new destinations to its 2025 flight schedule.

Apr 4, 2025

Fuel efficiency is becoming increasingly significant in the aviation sector, affecting economic savings and environmental impacts.

Apr 4, 2025

The Pilatus PC-24, a light business jet from Swiss manufacturer Pilatus Aviation, is notable for its performance and versatility, combining capabilities often seen in larger aircraft.

Apr 4, 2025