Hands Off My Points!
The New Jersey Legislature is considering a bill that will affect tourists, local small business owners and their employees.
Bill A1958 will cause hotel franchises to do away with loyalty programs and expected guest perks, as well as reduced safety and cleaning standards – all of which are critical to driving tourism in the state. Reducing the quality standards of New Jersey hotels and not accepting loyalty programs will dissuade planners of major conferences and events from coming to the Garden State and even jeopardize New Jersey’s bid for the 2026 World Cup.
IMPACTS OF NJ BILL A1958:
HOTEL FRANCHISE BILL WILL HURT NEW JERSEY TOURISM INDUSTRY & SMALL BUSINESS OWNERS.
Lowering quality and safety standards for hotels while voiding popular loyalty programs will discourage leisure and business travelers from visiting – jeopardizing the local tourism industry and hurting small business hotel operators and their employees.
Franchising has long served as the backbone of the hotel industry, accounting for some 33,000 hotels and supporting more than 664,000 jobs. More than 50 percent of all U.S. hotels are franchised, providing opportunities, especially for minority communities, in achieving the American Dream of owning and operating their own business.
The hotel franchise legislation would upend the industry by lowering quality and safety standards for hotels in our state while allowing franchise hotels not to accept loyalty programs. This would discourage leisure and business travelers from visiting our state, and major event planners would move conferences to other states with hotels with higher standards that accept loyalty programs.
The bill would also significantly hurt small business opportunities as major hotel brands would discontinue franchising opportunities in our state and not renew leases for current hotels if standards and loyalty programs aren’t accepted – leading to significant job loss and reduced tax revenue.
Removing loyalty programs discourages travelers from coming.
- Loyalty programs are a major component of leisure and business travel. Frequent travelers take advantage of these programs to save money on travel.
- Not accepting hotel loyalty programs in our state would discourage leisure and business travelers from visiting resulting in fewer bookings and revenue for local franchise and small business hotel owners.
- Leisure and business travelers, as well as major event planners, will simply take their business elsewhere where loyalty programs are accepted.
Lowering quality and safety standards denigrates customer experience.
- Travelers choose branded hotels because of specific expectations on amenities provided, room quality, and standards of service and cost.
- Permitting some franchise hotels from not adhering to specific brand standards and amenities denigrates the overall brand reputation of every hotel.
- Having hotels with lower quality and safety standards than other states would discourage travelers from visiting or vacationing here and would put our tourism industry at a disadvantage.
Reducing opportunities and revenue for our small business owners.
- If this bill is enacted, major brands would reduce or eliminate franchising opportunities in our state and could forgo renewing franchise leases for current hotels.
- This would significantly reduce opportunities for entrepreneurs in our state, especially among the minority community who make up a significant percent of hotel ownership.
- In the end, this legislation could have a significant negative impact on the tourism industry in New Jersey and the tax revenue it generates to support vital government programs.