Americans just can't keep up
Americans just can't keep up
Government data on spending, savings paints a worrying picture
Bryan Wroten (CoStar)
https://www.costar.com/article/1693928924/americans-just-cant-keep-up?
By Bryan Wroten
Looking at the latest information coming out of the federal government on prices, consumer spending, and savings, the situation doesn't look to be headed in the right direction.
CNN writes that Americans have been keeping a steady level of spending, thereby keeping the economy going, but to contend with all-around higher prices, they're tapping more into their savings and spending more than their income is growing.
The U.S. Department of Commerce reported this week that consumer spending increased by 0.5% in April while disposable income dipped 0.1%, CNN writes. The personal savings rate fell to 2.6% in April, its lowest since June 2022. The savings rate in January 2026 was 4.3%.
The article also cites commentary from NerdWallet senior economist Elizabeth Renter, who wrote that the combined factors of higher prices, slowing income and economic uncertainty could be leading up to consumers pulling back.
“Inflation appears to be quickening, both due to the oil price shock and its downstream effects, and the ongoing impact of tariffs,” she wrote. “While prices are rising faster than comfortable, incomes are not, putting consumers in an uncomfortable spot.”
It feels like we've written endlessly about the K-shaped economy, but in case you're not familiar, it describes the directions the economy is headed. The wealthier continue to increase their wealth, so spending on higher-end items and experiences is growing. Those on the lower socioeconomic spectrum are doing the opposite.
The hotel industry is seeing the effects of the K-shaped economy spread out over the different segments of the hotel chain scale.
A lot of factors are at play here, so there's no one quick fix to the economic situation. No one thing can do it; any solution or solutions would take time to reach their full effect.
In situations like these, I suppose you just have to pull the levers you can when you can, but for the most part, it's a matter of being aware of what's going on to know how to react.
The joys of revenge travel were a lot of fun, but nothing lasts forever. Americans have to build up their savings and spend some extra money to make up to some degree for what we lost during the pandemic. Unfortunately, that time has ended, and many are tightening their belts. The top part of the K-shaped economy can carry a lot, but I fear we'll eventually see its limits unless something changes soon.
This Popular Asian Country Is Slashing Visa-Free Stays for Americans
Fokke Baarssen/Shutterstock
https://www.fodors.com/news/photos/this-popular-asian-country-is-slashing-visa-free-stays-for-americans
And other travel news you may have missed.
This week in travel, we have several stories that may have flown under your radar. Among them: Thailand is reducing visa-free stays for many countries, including the U.S.; an EasyJet flight was diverted after a passenger left a power bank charging in their checked luggage; a United flight was diverted due to an unruly passenger; and a turbulent flight injured passengers and resulted in hospitalization.
Dive into these and more as we examine the latest in travel news.
PHOTO: COURTESY OF CATHAY PACIFIC AIRWAYS
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Eight Passengers Hospitalized After Turbulence on Cathay Pacific Flight
A Cathay Pacific flight traveling from Brisbane, Australia, to Hong Kong experienced severe turbulence that injured 10 people on board, including six cabin crew members and four passengers. Eight people were hospitalized.
A passenger on the flight said that it felt like the plane just dropped. Nicholas Stevenson told the Australian Broadcasting Corporation that the turbulence was sudden and sent phones, coffee, and food everywhere. People also hit the roof. “The first one caught everyone completely off guard, and then probably 15 or 20 seconds later, it happened again.”
The flight crew got the worst of it. They had just started tea and coffee service, and they were thrown as food carts smashed into them, too. Fortunately, there were four doctors on board who assisted the injured, and the flight continued to Hong Kong.
Stevenson also said the pilot apologized, and after they landed, the injured were deboarded first.
PHOTO: COWARDLION/SHUTTERSTOCK
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Thailand Tightens Tourist Visa-Free Entry for Americans
Thailand has finally had enough of tourists behaving poorly. The country, which relaxed entry rules in 2024 after COVID decimated tourism, is limiting visa-free stays to 30 days from 60 days. Visitors from the U.S., along with 53 other countries, will only be able to stay half as long as in previous years.
Travelers from France, Japan, Germany, and Singapore will also be impacted by this rule change. It is being reported that the government is concerned about unauthorized businesses being run by foreigners. The policy will go into effect 15 days after it is published in The Royal Gazette.
The country welcomed almost 33 million visitors last year. Authorities have also been dealing with poor behavior by foreigners, including bar fights and performing sexual acts publicly.
PHOTO: CARLOS FLORENTIN/SHUTTERSTOCK
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Australian Falls to Death While Hiking Machu Picchu
An Australian tourist fell into a ravine while hiking a difficult part of the Inca Trail in Peru and tragically died. Matthew Paton fell on Wednesday, and his body was found the next day. He was a sergeant with Victoria Police and was traveling with his wife when he fell about 1,000 feet through a broken railing while crossing a bridge. They had arrived in Cusco 12 days earlier and were on a four-day hike with a group and a guide.
Victoria Police said that Paton loved traveling and exploring historic sites. “His colleagues and the entire policing family are devastated at the tragic loss of a wonderful, caring person.”
His family said that he always wanted to go to Peru and even learned Spanish for it. Family members were also on their way to Peru.
PHOTO: ADAM KLIS/ISTOCK
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EasyJet Flight Diverts Due to Power Bank
An EasyJet flight from Hurghada, Egypt, to London diverted to Rome after a passenger informed flight crew that they had left a power bank charging a device in their checked luggage. As a precautionary measure, the pilot decided to divert the plane three hours into the flight.
Power banks pose a fire hazard on planes, and multiple airlines around the world have banned their usage in the air. They are not allowed in checked baggage.
EasyJet said in a statement that the captain “took the decision to divert as a precaution in line with safety regulations. The aircraft landed safely, passengers disembarked routinely, and we provided hotel accommodation and meals where available. As some customers remained in the airport, they were provided with refreshments.”
PHOTO: UNITED AIRLINES
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United Flight Diverts After Unruly Passenger Tries to Open Door
A United flight from Newark to Guatemala City was diverted after an unruly passenger tried to open a door mid-air. The flight had 145 passengers and six flight crew members, and it was diverted to Washington Dulles “after the crew reported a passenger disturbance,” the Federal Aviation Administration said.
An air traffic control officer is recorded asking, “Which door did the passenger try to open?” A crew member replies, “Door 2L at 36,000 feet, and then assaults a fellow passenger.
The flight landed safely, with law enforcement meeting the plane. The airline gave overnight accommodation to passengers who flew to their destination the next morning.
Why hoteliers are turning to spend data to shore up profit margins
https://hotelsmag.com/news/the-digital-layer-of-procurement-turning-spend-data-into-profitability/
Hotel leaders have a powerful asset: spend data. Results come when that data improves daily decisions, including what to buy, what to substitute, and what to standardize.
HOTELS Magazine’s latest webinar, “The Digital Layer of Procurement: Turning Spend Data Into Profitability,” hosted in partnership with Entegra, discussed how procurement teams use spend visibility, benchmarking, and guided purchasing insights to improve profit margins and efficiency.
Here are the main themes discussed in the webinar, which you can watch in full below.
1. A challenging environment
Hotel owners are facing mounting financial pressure as inflation, tariffs, fuel costs and higher interest rates continue to outpace revenue growth. “We’re definitely in an environment where expenses are rising faster than revenues are,” said Kirk Pederson, COO of PM Hotel Group. “A lot of those increases are out of our control.”
That dynamic has shifted the industry’s focus from topline growth alone to a much sharper emphasis on profitability and operational efficiency. Rachel Dabrowa, VP of sourcing operations and engagement at Wyndham Hotels & Resorts, noted that sourcing and procurement have become significantly more strategic as every purchasing decision now directly affects owner returns. “Every dollar counts,” she said, adding that Wyndham’s focus is increasingly centered on total cost of ownership and long-term value rather than simply securing the lowest immediate price.
2. Turning data into action
The discussion repeatedly returned to the growing importance—and complexity—of data management in hotel operations. While operators now have access to more information than ever before, panelists agreed that the challenge lies in turning that data into actionable insights. “The access to data isn’t necessarily the blind spot,” Dabrowa said. “It’s turning it into action.”
Debbie Shepard, director of digital solutions at Entegra, echoed that sentiment, arguing that traditional backward-looking reporting is no longer sufficient in today’s operating environment. Instead, operators increasingly need real-time visibility into purchasing trends and performance metrics to make faster decisions and adjust spending behavior before monthly or quarterly results are finalized.
3. Simplifying data analysis
Panelists also discussed how hotel companies are attempting to simplify data analysis for on-property teams already stretched thin by daily operational responsibilities.
Pederson said PM Hotel Group’s corporate structure functions as a “support center” designed to help hotel-level teams interpret data and identify opportunities quickly. “They don’t have the time,” Pederson said of hotel general managers. “Our role is to analyze this data and give them direction.”
However, integrating information across multiple systems remains a major hurdle for operators managing hotels across several brands. Pederson pointed to the ongoing challenge of connecting PMS, POS, accounting, and procurement platforms into one streamlined ecosystem that produces usable insights.
4. Assessing AI
Artificial intelligence emerged as another major topic during the webinar, as it has become an essential tool for simplifying operations and improving purchasing decisions.
Shepard said AI development in procurement technology is advancing carefully, with companies focused on ensuring accuracy and maintaining client trust before rolling out large-scale capabilities.
Dabrowa added that Wyndham already sees AI playing a key role in improving efficiency, supporting franchisees, and helping owners identify savings opportunities more proactively. She added that Wyndham’s procurement and sourcing tools, including Wyndham Marketplace and PriceIQ, are helping provide the real-time visibility needed to eventually support more advanced AI-driven recommendations. “Technology is shifting from just facilitating transactions to actively guiding decisions,” she said.
5. Profitability pressure
The conversation also highlighted the growing pressure owners are placing on operators to preserve margins as refinancing challenges and higher debt costs weigh on hotel performance.
Pederson said most profitability pressure is coming directly from ownership groups rather than brands, as owners contend with tighter debt-service requirements and looming loan maturities. “Every asset manager is focused on every dollar,” he said.
At the same time, panelists acknowledged that many hotels have already been operating lean for years, limiting the number of easy cost-cutting opportunities still available. “There isn’t a lot of juice left to squeeze,” Pederson added.
Even so, they agreed that procurement optimization, real-time spend visibility and smarter technology integration will continue playing a larger role in hotel operations as companies search for new ways to improve margins in a high-cost environment.
Beyond cost-cutting, panelists emphasized that profitability strategies must preserve and enhance the guest experience. While panelists discussed finding savings through procurement optimization, they stressed that not every product should be treated equally. “There are many ways to reduce costs without impacting the guest experience,” said Dabrowa, pointing to lifecycle value and durability as more important metrics than upfront price alone. Towels, for example, may appear cheaper initially but can cost more over time if they wear out faster and require replacement sooner.
6. Quick wins
The conversation repeatedly returned to the role of data in identifying “quick wins.” Debbie Shepard highlighted examples ranging from switching commodity products such as pepper packets or yogurt brands to leveraging group purchasing power for services like landscaping, pest control, and elevator maintenance. Many of those changes, panelists said, can deliver savings without guests ever noticing.
Kirk Pederson argued that the larger challenge is behavioral, not technological. “We’ve been buying the same pepper packs for 10 years,” he joked, describing how hotel teams often default to familiar purchasing habits. AI-driven procurement tools, he said, can help operators identify lower-cost alternatives while staying within brand standards.
To-go thoughts
As the webinar concluded, panelists encouraged hotel operators to focus on incremental improvements rather than sweeping overhauls. Dabrowa recommended identifying one high-spend category and standardizing purchasing practices, while Shepard suggested operators use AI tools and invoice analysis to pinpoint areas for savings. Pederson advised hoteliers to conduct purchasing audits throughout the year instead of waiting until year-end reviews.
Profitability is no longer solely about cutting costs, but about using spend data strategically to balance operational efficiency, guest expectations, and long-term asset performance.
Bad News if You’re Flying to This European Country in June
Sean Pavone/Dreamstime
https://www.fodors.com/world/europe/portugal/experiences/news/portugal-strike-could-disrupt-hundreds-of-flights-across-europe
A planned one-day strike in Portugal on June 3 could disrupt up to 500 flights, affecting airlines including TAP Air Portugal and easyJet.
A general strike in Portugal could disrupt as many as 500 flights in early June. Multiple trade unions, including cabin crew belonging to the SNPVAC union, have planned a one-day walkout on Wednesday, June 3.
Ricardo Penarróias, president of a cabin crew union representing flight attendants at TAP Air Portugal—the flag carrier of Portugal and its largest airline—reported the number of impacted flights, but received almost immediate pushback from some of the airlines. The union indicated flights operated by TAP, easyJet, and Dublin-based Ryanair would be impacted, but the Irish airline told The Independent it was not anticipating any impacts to its operation.
Luton-based easyJet was anticipating some of its flights to be impacted, with some 800 flight attendants staffing its Portuguese bases at Lisbon, Porto, and Faro.
Several of Portugal’s unions are participating in the general strike to protest proposed labor reforms that would make it easier for companies to fire employees and outsource jobs to non-union workers and workers outside Portugal. The strike was proposed by one of the country’s largest umbrella unions of trade workers, with several trade-specific unions joining the action, including those representing workers in the health, education, public transportation, and intercity rail sectors.
A union representing airline pilots said it would not join the strike, but both Portuguese and European aviation regulators prohibit passenger flights from operating without a minimum number of flight attendants on board for safety reasons.
To accommodate passengers displaced by the pending work action, TAP is offering flexibility for tickets issued prior to May 20 (when the union announced participation in the strike) for confirmed seats on June 3. Passengers can instead fly through June 2, or from June 4 to 11, without any additional charges. The airline advises that passengers can make their changes directly with TAP or with travel agents.
Not all TAP cabin crew are members of the striking SNPVAC union. Unlike unionized airline crews in the United States, which generally operate on a “closed shop” principle (meaning cabin crew must, in most situations, join a specific union as a condition of employment), union membership in Portugal is voluntary. TAP has a number of different contract situations for its own cabin crew, and can continue to operate some flights on June 3 with workers who are not members of SNPVAC or who are members of unions not participating in the general strike.
TAP has not given any indication whether the majority of the impacted flights would be on the airline’s short-haul European network or their long-haul flights. The airline has significant service from the Americas and Africa to its hub at Lisbon. easyJet and Ryanair operate services within Europe from their Portuguese bases.
The last time TAP flights were grounded by a labor action was in December, as part of another general strike in response to the government’s proposed changes to the country’s labor laws. That strike also lasted a day, but ultimately allowed the airline to operate only 63 of the 283 flights it had scheduled for that day. Train and bus services across Portugal also saw similar reductions in service, operating only the bare minimum with the available remaining staff.
Wages in Portugal are some of the lowest in the European Union, and workers there have also been pinched by higher housing costs and creeping inflation. Labor strikes in Portugal tend to be announced in advance, and are limited to just one day of disruption, giving airline passengers in particular time to sort out other options for travel, most often on the days surrounding the strike date.
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