Duff on Hospitality Law

This week’s OTA and Travel Distribution Update for the week ending December 16, 2016 is below. This week’s Update contains an update on one important recent court decision involving OTAs.

California Supreme Court Issues a Potentially Troubling Opinion [OTA / Tax]. Although I don’t often comment on the multitude of OTA tax decisions issued across the country, I felt that the recent California Supreme Court decision finding (once again) in favor of OTAs warranted some discussion. Although the California Court, like so many courts before it, based its decision on the rather uncontroversial conclusion that the OTAs were not “Operators” (the party expressly obligated to collect the occupancy tax under the applicable San Diego Municipal Code) of the subject hotels, language found elsewhere in the decision caught our attention.

Our weekly client OTA & Travel Distribution Update for the week ending December 9, 2016 is below. Nothing too earth shattering this week, so we will keep things short . . .

Hello all,

With the new year, we plan to post portions of the OTA & Travel Distribution Updates that I prepare and circulate among our hospitality clients each week. Although the posts will be a week or two behind the initial client updates, we hope that the information will nevertheless be relevant to those of you working in the digital marketing / e-commerce / distribution world. We hope you enjoy and benefit from these new posts. Below is the weekly update ending December 2nd, 2016.

Happy Holidays everyone.

Fourteen lawsuits were filed last week against employers at the Seattle-Tacoma International Airport for paying less than the $15 minimum wage approved by Sea-Tac voters in 2013. Defendants include baggage handling firms, rental car agencies, food-service establishments and logistics firms. These lawsuits have been filed by defendants represented by Attorney Duncan Turner of Badgley Mullins Turner and seek class action status. The lawsuits currently cover about 40 plaintiffs, although Mr. Turner estimates this could grow to 1,500 plaintiffs and that total back-pay sought could be $14 to $21 million.

Alaska Airlines and three other plaintiffs had filed a lawsuit arguing that the Sea-Tac minimum wage should not apply to the airport. The State Supreme Court ruled against them in August, 2015, and in December, 2015 rejected a request to review the case.

If you have any questions about these lawsuits, would like to review a copy of one of the complaints, or would like to discuss applicable wage & hour issues, please feel free to contact Greg Duff.

This year's HSMAI Lodging Chief Digital Officer Executive Roundtable was held on December 8, 2015 at Washington, D.C.

For those of you who attended, or did not attend the Roundtable, my presentation, "Distribution Parity: Where Do We Go From Here?", is available below. It features an overview of recent worldwide parity developments in the online distribution world.

Feel free to contact me if you have any questions.

This week finds me at LA Live in downtown Los Angeles attending this year's PhoCusWright Conference. Those in the hotel industry know LA live well - for the past few years the JW Marriott at LA Live has served as the host hotel for the industry's annual ALIS Conference. While ALIS is known for bringing together the hotel industry's best and brightest, I would submit that the 1600 plus attendees (from 40 plus countries) at this year's PhocusWright represent the future of travel and the hotel industry.

The hospitality industry regularly faces tremendous challenges, ranging from unexpected tornadoes to salmonella lurking in organic eggs requested by guests. However, negative reviews on TripAdvisor.com or similar sites pose particularly perplexing challenges. Should the business respond or ignore them? Our newest post discusses the latest legal developments regarding negative on-line reviews. – Greg 

I’m pleased to introduce guest author Sam Engel, from BrandVerity. BrandVerity provides services that detect online brand and trademark abuse for a variety of industries including hospitality. Sam spoke recently to members of our Hospitality, Travel and Tourism team at our monthly meeting. We’re grateful that Sam has offered to now share his experience and knowledge with our readers. Welcome, Sam, and thank you for today’s post. – Greg

Today’s blog post was contributed by Garvey Schubert Barer’s D.C. attorney and member of the firm's China Practice, Richard Gluck, based on original research by GSB’s Yi Zhang. His extensive knowledge of international business and collaboration between the U.S. and China is a great resource to the firm. We’re grateful to have him as a new author to the Duff on Hospitality blog. – Greg

For those of you who attended, or even those of you who did not attend, below are the slides from my recent presentation in New Orleans at the Executive Vendor Summit. Feel free to contact me if you have any questions.