Hotel CEOs' Outlook, Airlines’ Climate Progress and Barry Sternlicht's Warning

On today’s pod, hotel CEOs discuss U.S. disappointments, IATA’s boss criticizes fuel supply lines, and Starwood’s founder warns big chains.

Good morning from Skift. It’s Wednesday. Here’s what you need to know about the business of travel today.

Hotel CEOs believe the U.S. is wasting its tourism potential with the country facing a 50 billion dollar deficit in international travel, writes Senior Hospitality Editor Sean O’Neill.

Marriott CEO Anthony Capuano and other leaders said Washington needs to streamline visa processing and take other steps to ensure the U.S. is ready to host major sporting events in the next decade. Several hotel CEOs have called for more funding for Brand USA, the country’s tourism marketing organization. And they hope President Trump and Congress will allot money to help with long-standing infrastructure and resource needs.

In addition, many hotel CEOs said they’re focused on expansion abroad, especially India, Southeast Asia, and the Middle East.

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Next, Willie Walsh, director general of the International Air Transport Association, is blaming governments and fuel producers for aviation’s slow process in reaching its climate goals, writes Climate Reporter Darin Graham.

Walsh said the European Union, in particular, has failed to provide the support needed to increase the production of sustainable aviation fuel. Walsh added that companies such as BP and Shell have cut back or delayed their investments in green fuel. The European Union’s current policy requires airlines to use at least 2% sustainable aviation fuel in their fuel mix by 2030.

Fuels Europe said producers have rapidly scaled SAF output and lowered costs.

Finally, Starwood Hotels founder Barry Sternlicht says established hotel chains are facing growing pressure from independent brands, reports Senior Hospitality Editor Sean O’Neill.

Sternlicht, who sold Starwood to Marriott for 13 billion dollars in 2015, said newer brands are much easier to launch via social media. Sternlicht added that successful hotel brands must differentiate themselves and that hospitality remains fundamentally about service quality.

Sternlicht has officially rebranded his latest hotel management company as Starwood Hotels, reviving the name of the company he founded in 1991.