Duff on Hospitality Law

This week’s Update features stories on Hopper and its latest fintech offering, Agoda’s new “eco” oriented discount program and Expedia Group’s Peter Kern’s summer travel plans (watch the video). Enjoy.

Leave Anytime: Hopper’s Latest Offering
(“Hopper Will Let Customers Pay a Fee to Leave the Hotel After Check-In for Any Reason,” June 7,2022 via Skift) (subscription may be required)
Don’t like your hotel or the room you received? No problem. Hopper has a solution. Hopper announced its latest fintech offering, which allows guests in exchange for a fee paid to Hopper at the time of booking, to leave their hotel at any time for any reason following check-in. Guests electing to leave their original hotel can then book an alternative hotel with Hopper covering the costs. Hopper estimates the price for this new option to average $30.00. Hopper claims that it will pay the fees and charges owed the guest’s original hotel, though one can foresee a future where Hopper becomes a formidable adversary disputing hotel charges on behalf of their allegedly disgruntled guests. With this latest announcement, Hopper also announced the expansion of several of its existing offerings, including the expansion of its cancel for any reason product into hotels and its price freeze product into rental cars.

Last week was all about loyalty as we saw a number of stories on the new roles that technology and online platforms are playing for hoteliers seeking to update and expand (or even launch) their loyalty programs. We include three of those stories in this week’s Update. Enjoy.

Technology Powers Loyalty Program Growth
(“IHG introduces new loyalty program,” April 13, 2022 via Hotel Business)
 (“Tech is powering the new look of hotel loyalty programs,” April 16, 2022 via Phocus Wire)
(“Fintech to Help Smaller Hotel Brands Like Selina Launch Rewards Cards,” April 13, 2022 via Skift) (subscription may be required)
This week, we feature three separate stories detailing the important role that technology (and online platforms) is playing in updating existing and launching new loyalty programs.

• • In recent weeks, both IHG and Accor have announced major updates (in the case of IHG, a complete overhaul) to their loyalty programs. In the case of IHG and its new IHG One Rewards program, the program is centered on IHG’s mobile application and now allows members to customize the rewards they receive through another online platform, Milestone Rewards. The newly constituted program, including Milestone Rewards, is expected to be available in June. Accor also recently announced changes to its loyalty program Accor Live Limitless (ALL) through a new partnership with online entertainment platform Fever, which will allow members to use their loyalty program benefits to book a variety of activities and experiences.
  • Lastly, Skift explains how fintech startups are allowing smaller hotel and travel companies (Selina) to launch new co-branded payment cards (to boost their fledging loyalty programs) in under a month. In Selina’s case, its planned card will feature cash rewards for signing up, loyalty program points and cash rebates for hotel stays. 

To celebrate Data Privacy Day, on January 28, California Attorney General Rob Bonta announced an investigative sweep of businesses offering loyalty programs in California. This should come as no surprise, as Attorney General Bonta highlighted loyalty programs as one of the areas of non-compliance his office addressed during the first year of California Consumer Privacy Act (CCPA) enforcement. In this sweep, the Attorney General’s office sent letters of non-compliance to businesses across different industries, including in the travel and food services industries. Those companies have 30 days to cure their non-compliance or will be subject to further enforcement action and penalties.