Business

Why Marriott, Hilton and Hyatt Don’t Actually Own Most of Their Hotels. This asset-light franchise model indeed allows faster growth than the capital-intensive model which would require chains to own hotels. But the franchise model also requires a lot of work. First, chains must be popular among millions of guests. Maintaining the brand values and consistency across numerous properties and countries is never easy. Second, chains must prove to owners that it makes economic sense for owners to work with them. Does owning and operating a branded hotel yield a higher return than other investment?

Elon Musk and Jamie Dimon’s AI Predictions and What They Mean for the Future of Humanity. Artificial Intelligence (AI) has been around since the 1950s. Businesses have employed it, in the form of machine learning or data mining for a long time. The concept didn’t catch fire until ChatGPT was born. Since then, a lot of people have talked about AI. To me, it’s a tool and as a tool, whether it is useful depends on who uses it and in what situation. It is useful in some cases and less in others. You can’t eat soup with a fork, but it’s perfect for a pasta. One day, AI may change our life drastically. When it happens and whether it’s for the better or worse are unknown. I don’t dislike AI. It’s a pretty novel concept with plenty of unpredictability. What I don’t like is the hype. And it’s ok to be hype people for AI. It’s just that if you are willing to board the bandwagon, get ready for some criticisms.

Immigrants in Maine Are Filling a Labor Gap. It May Be a Prelude for the U.S. Main has an aging population and needs labor to grow its economy. A lot of immigrants need training and work to make ends meet. It’s a perfect combination. Maine gets a group of people that are hungry, literally and figuratively, to work while the people have a chance at their own American Dream.

CEO Andy Jassy’s 2023 Letter to Shareholders. I like the part where Andy Jassy talked about the role of primitives and how they were built. In addition, there were other interesting nuggets such as how many packages Amazon shipped on the same day or overnight in 2023, their conviction to make Prime Video profitable as a stand-alone business, AWS and how they think about Generative AI. It’s hard to dismiss the strength of Amazon. The company has grown from strength to strength in the last 24 hours. There was doubt in the beginning over Andy’s ability to succeed Bezos. Not much any more.

Other stuff I find interesting

How Exercise Strengthens Your Brain. “Exercise offers short-term boosts in cognition. Studies show that immediately after a bout of physical activity, people perform better on tests of working memory and other executive functions. This may be in part because movement increases the release of neurotransmitters in the brain, most notably epinephrine and norepinephrine. “These kinds of molecules are needed for paying attention to information,” said Marc Roig, an associate professor in the School of Physical and Occupational Therapy at McGill University. Attention is essential for working memory and executive functioning, he added. Perhaps most remarkable, exercise offers protection against neurodegenerative diseases. “Physical activity is one of the health behaviors that’s shown to be the most beneficial for cognitive function and reducing risk of Alzheimer’s and dementia,” said Michelle Voss, an associate professor of psychological and brain sciences at the University of Iowa.”

‘Now They’re Voting Red’: A Pennsylvania Fracking Boom Weighs on Biden’s Re-Election Chances. Biden might have done the right thing for future generations by curbing fracking and projects that potentially harm the environment for years to come. The operative word is MIGHT. Regardless, people care less about what’s in the future than how they can put food on the table NOW. Biden must have a plan to help folks make ends meet and communicate FAR BETTER such plans and why he wants to do what he wants.

What Researchers Discovered When They Sent 80,000 Fake Résumés to U.S. Jobs. A fascinating study on an otherwise disappointing topic.

German Business Is Tangled in Red Tape. Everything needs to be in balance, including the role of regulations. It’s as harmful to have a lawless land as to have excruciating red tap. That’s a hill I am willing to die on. The EU is willing to impose regulations more than the US government in order to protect consumer interests. However, in some cases, particularly recently, the zone’s regulators have gone too far. Germany is yet another example of an economy suffocated by red tape.

The Hidden Costs of Homeownership Are Skyrocketing.”Property taxes and home-maintenance costs are climbing in much of the country. Non-mortgage costs including property taxes, maintenance, utilities and insurance make up more than half of homeowners’ overall costs, according to a 2022 analysis by Fannie Mae economists.”

Stats

Uber now has 1 million merchants

40% of consumers used BNPL at least once and unsurprisingly overspending is the top problem these users encountered

62% of surveyed CEOs said they expected a full-time return to office by 2026

In February 2024, revolving credit increased at an annual rate of 10.2 percent