Minor CEO warns of more job cuts, closures
Bangkok-based Minor International may cut more jobs and shut recently re-opened properties as the coronavirus pandemic and travel restrictions continue to keep guests away. “We have hotels that can’t even pay for staff or electricity because they’re totally empty,” Bill Heinecke, chairman and founder of Minor, said in an interview with Bloomberg. Minor has already cut thousands of jobs to stay afloat after the pandemic ground to a halt global travel and tourism. Thailand’s reluctance to open its borders makes it one of the most difficult markets for Minor, Heinecke said.
Airbnb’s cash burn means urgency for upcoming IPO
Airbnb burned through US$1.2 billion in cash in the first half of 2020, more than a third of its cash reserve, according to documents seen by The Information. Most of the drain came from refunds Airbnb had to pay out to customers due to the COVID-19 pandemic; the company cut way back on its marketing and business development spending. Airbnb aims to raise US$3 billion in its December IPO, which would bring the valuation back up to US$30 billion.
Will ad budgets for U.S. travel industry tank?
U.S. travel digital ad spending will drop by 41% year-over-year to just US$3.24 billion, according to a forecast from research firm Insider Intelligence. The pandemic has affected airlines, car rental agencies, hotels and resorts, online booking services, cruises and destination marketing organizations; business travel support services found their operations ground to a near-halt for much of Q2 2020. Not surprisingly, most have dramatically pulled back their advertising budgets, Insider Intelligence says.
NYC’s Roosevelt hotel will close permanently
New York City’s Roosevelt Hotel announced it will permanently close its doors for guests on October 31. Located in Manhattan, The Roosevelt is owned by the government of Pakistan through PIA Investments Ltd. The development comes months after Pakistan’s government decided to not sell the iconic hotel, instead running it through a joint venture. According to the hotel, the decision was made for economic reasons.
Ovolo’s ‘quarantine package’
New York-based Ovolo Hotels introduced a “quarantine concierge” package in Hong Kong, in an effort to provide peace of mind to arriving visitors and residents during their government-mandated 14-day quarantine. On arrival at Hong Kong Airport, all travelers are tested for COVID-19. Ovolo will be there to welcome all guests, including Hong Kong residents returning from the U.S. and UK. Once in their rooms, guests are required to remain there for 14 days, per governmental regulations. The concierge will make trips to the grocery store, pharmacy or convenience store on guests’ behalf.
Upcoming women and hospitality summit will be virtual
This year’s upcoming Women in Tourism and Hospitality Global Summit, hosted by the Women in Tourism & Hospitality, is October 14-15 and will be virtual due to COVID-19. Break-out sessions will revolve around challenges created by the pandemic, as well as women-focused issues around breaking barriers and building resiliency. This year’s Katie Taylor Economic Empowerment award will be presented by Marriott International CEO Arne Sorenson. Registration is free.