WEBVTT - Surveillance: Hertz EVs With Tom Brady 0:00:05.120 --> 0:00:09.200 Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane along 0:00:09.240 --> 0:00:13.200 with Jonathan Ferrell and Lisa Brownwitz Jailey. We bring you 0:00:13.320 --> 0:00:18.600 insight from the best and economics, finance, investment, and international relations. 0:00:18.960 --> 0:00:23.840 Find Bloomberg Surveillance on Apple Podcast, Suncloud, Bloomberg dot Com 0:00:23.920 --> 0:00:29.800 and of course on the Bloomberg Terminent. Right now, what 0:00:29.880 --> 0:00:32.400 we have to see is the rebuilding of the Hurts brand. 0:00:32.400 --> 0:00:36.640 Their interim CEO is with Eric Shatzker on the floor. Eric, 0:00:36.680 --> 0:00:39.280 Good morning, Tom, Good morning to you. I'm down here 0:00:39.360 --> 0:00:43.120 at Times Square. This is part of the NASDAC and 0:00:43.200 --> 0:00:47.760 I'm with Tom Wagner nighthead Capital Management, Greg O'Hara, up Sertaris, 0:00:47.800 --> 0:00:50.800 and Mark Fields, the interim CEO of Hurts. This trio, 0:00:50.920 --> 0:00:54.880 Tom is responsible for one of the most remarkable corporate 0:00:54.880 --> 0:00:59.040 turnarounds in American history. Back in May of two thousand twenty, 0:00:59.120 --> 0:01:02.280 Hurts foiled for bank see last night. It went public 0:01:02.320 --> 0:01:05.919 again at a share giving the company in market value 0:01:05.959 --> 0:01:11.240 of some thirteen billion dollars. What are remarkable turnaround? Greg 0:01:11.240 --> 0:01:15.000 would like to begin with you Hurts stunned not just 0:01:15.040 --> 0:01:17.880 the auto industry, but the financial markets with this order 0:01:17.920 --> 0:01:22.240 for one hundred thousand Tesla's. Why make such an early 0:01:22.360 --> 0:01:26.119 bet on electric vehicles, Why take the risk of being 0:01:26.160 --> 0:01:28.959 the first mover. As you know, if we're in the 0:01:28.959 --> 0:01:31.639 travel industry, we've got we've got to investments all across 0:01:31.680 --> 0:01:35.880 the travel industry and providing people with the products they want. 0:01:36.440 --> 0:01:38.400 It was an easy decision for us. So we know 0:01:38.560 --> 0:01:42.120 our corporate travelers want electric vehicles to go visit their 0:01:42.120 --> 0:01:44.800 clients and and and do business in. We know our 0:01:44.880 --> 0:01:47.800 leisure travelers want electric vehicles. It's a great way for 0:01:47.880 --> 0:01:51.760 them to try electric vehicle without committing, And specifically they 0:01:51.800 --> 0:01:56.520 want Tesla's. They like Tesla's and they'd like to rent Tesla's. So, 0:01:56.720 --> 0:02:00.080 in combination with understanding the demand is there, and an 0:02:00.080 --> 0:02:03.800 opportunity to get a very hot product and amazing product 0:02:04.040 --> 0:02:05.760 that allows us to put it in the hands of 0:02:05.760 --> 0:02:07.960 people who want it, was an easy decision for us. 0:02:08.160 --> 0:02:10.359 Tom At the ip O price of twenty nine dollars 0:02:10.360 --> 0:02:12.360 a share, you've pretty much tripled your money in the 0:02:12.360 --> 0:02:15.480 space of four months, which in and of itself is remarkable. 0:02:15.840 --> 0:02:18.560 As you know, there are some skeptics out there, haters, 0:02:18.560 --> 0:02:20.840 you might call them haters. They don't believe in your story. 0:02:21.280 --> 0:02:24.720 They say Kerch doesn't have a firm order for Tesla's. 0:02:24.760 --> 0:02:27.400 They say Elon Musk is dumping model freeze. What can 0:02:27.520 --> 0:02:30.520 you say right here, right now to address some of that, 0:02:30.600 --> 0:02:33.800 let's call it confusion. Well, I think that there's no 0:02:33.919 --> 0:02:38.320 question that there's an incredible amount of demand for our products. Generally, 0:02:38.560 --> 0:02:42.280 we have a very robust environment for the rental car industry. 0:02:42.320 --> 0:02:45.359 We expect that to continue. We're very focused on bringing 0:02:45.400 --> 0:02:48.359 products into our fleet. As Greg mentioned that we know 0:02:48.560 --> 0:02:50.960 people want to rent. There's no question they want to 0:02:51.000 --> 0:02:53.480 rent Tesla's, There's no question that they want to rent 0:02:53.560 --> 0:02:56.120 you know, higher value vehicles from all the O e 0:02:56.280 --> 0:02:57.920 M s. There's no question. It's a big move a 0:02:57.960 --> 0:03:00.880 foot to electrifications. So, you know, for the people who 0:03:00.919 --> 0:03:03.680 doubt what we're doing, um, you know, we we would 0:03:03.720 --> 0:03:06.959 simply ask if they stay tuned and watch what we 0:03:07.000 --> 0:03:08.800 have to come because we think that this is just 0:03:08.840 --> 0:03:11.680 the beginning of an effort to put Hurts at the 0:03:11.720 --> 0:03:15.040 center of mobility in a way to serve our O 0:03:15.120 --> 0:03:18.040 e M partners and to serve our customers, to provide 0:03:18.040 --> 0:03:21.160 a better rental experience and a better corporate partnership with 0:03:21.200 --> 0:03:25.200 those parties. Mark these other guys here, Tom and Gregg 0:03:25.200 --> 0:03:29.040 their financial guys. Right, you're a real economy CEO. You 0:03:29.200 --> 0:03:33.400 ran forward, you know all about operations and execution. One 0:03:33.400 --> 0:03:37.800 of the biggest challenges Hurts has to overcome in this 0:03:37.920 --> 0:03:41.200 move to electrification and the transition to what we might 0:03:41.280 --> 0:03:44.840 call share mobility. Yeah. Well, first off, first off, I 0:03:44.840 --> 0:03:46.560 don't look at me as challenges. I look at at 0:03:46.600 --> 0:03:49.720 a huge opportunities because we're really staking ourselves out I 0:03:49.720 --> 0:03:52.880 think a very important place in as Tom mentioned, this 0:03:52.960 --> 0:03:57.520 mobility ecosystem, wherever mobility two point oh goes obviously clearly 0:03:57.560 --> 0:04:00.440 as we look to lead an electrification can sure we 0:04:00.480 --> 0:04:04.640 get our charging infrastructure in place that's happening as we speak, 0:04:05.080 --> 0:04:07.720 and then be able to you know, that first mover 0:04:07.880 --> 0:04:12.120 advantage of learning how to manage these large electrified fleets, 0:04:12.160 --> 0:04:13.760 I think is going to give us a very big 0:04:13.800 --> 0:04:17.119 competitive advantage, not only in the near term, as Tom 0:04:17.160 --> 0:04:19.880 and Greg said, to get customers into these vehicles that 0:04:19.920 --> 0:04:22.680 they want to drive, but more importantly, you know, in 0:04:22.760 --> 0:04:24.919 business you have to start looking around the corner. So 0:04:24.960 --> 0:04:27.320 as you think about autonomy down the road, those are 0:04:27.400 --> 0:04:30.760 large electrified fleets. I think We're gonna be well positioned 0:04:30.800 --> 0:04:32.560 to work with a lot of different partners to make 0:04:32.600 --> 0:04:35.000 that happen. That's an important point. Some people think of 0:04:35.040 --> 0:04:39.600 this as just an e V play for rental car customers. 0:04:39.600 --> 0:04:41.920 What what do you mean by these lords? What is 0:04:41.960 --> 0:04:44.480 what is fleet management and why is it important? Well, 0:04:44.800 --> 0:04:48.440 first off, it steps back and about our overall corporate strategy. 0:04:48.520 --> 0:04:50.640 And you mentioned this is not only a turnaround, this 0:04:50.720 --> 0:04:54.559 is a transformation of hurts. And looking around the corner, 0:04:54.600 --> 0:04:57.520 you have to look at the big trends, right mobility, Uh, 0:04:57.560 --> 0:05:01.840 you've got electrification, shared mobility, can at cars, autonomy, and 0:05:01.880 --> 0:05:04.240 we're positioning the company for the things that we do 0:05:04.320 --> 0:05:08.080 better than anybody else, which is managed large fleets. We 0:05:08.120 --> 0:05:12.600 do it economically consistently all around the world. That is 0:05:12.640 --> 0:05:15.280 going to need that. That the the ability to manage 0:05:15.320 --> 0:05:18.160 those fleets and mobility two point out, somebody's going to 0:05:18.240 --> 0:05:20.040 have to do it and we're the best at that, 0:05:20.080 --> 0:05:23.720 and we want to position ourselves. Avis, as you might know, 0:05:23.960 --> 0:05:26.240 is trash talking her. It's on the conference call just 0:05:26.279 --> 0:05:29.960 a few days ago. Knowing what you know, Tom directly 0:05:30.000 --> 0:05:32.880 from the manufacturers. I might add about the current and 0:05:32.960 --> 0:05:35.919 future supply of electric vehicles. What are the chances that 0:05:36.000 --> 0:05:39.160 Avis or maybe enterprise is going to catch up with you. 0:05:40.000 --> 0:05:43.000 I think that over time, we'll see all of the 0:05:43.040 --> 0:05:45.320 rental car companies transition to e vs. And I think 0:05:45.360 --> 0:05:47.880 that that will happen because it's what we believe consumers 0:05:48.360 --> 0:05:51.320 want Today. There's is certainly a huge percentage of the 0:05:51.320 --> 0:05:54.480 population that really wants to to drive electric vehicles, and 0:05:54.520 --> 0:05:57.680 we think that will only happen with increasing speed as 0:05:57.720 --> 0:05:59.919 time pass us. So I think it's a natural evolution 0:06:00.600 --> 0:06:02.560 for the industry to to take. And I think you're 0:06:02.560 --> 0:06:04.279 seeing that on the O E. M side, You're gonna 0:06:04.320 --> 0:06:06.080 see it on the product delivery side from the rental 0:06:06.080 --> 0:06:09.359 car companies, You're gonna see it in right hill. So um, 0:06:09.400 --> 0:06:11.960 I think this is the first step of a large 0:06:12.000 --> 0:06:16.760 transformation and a process of bringing electric vehicles into mainstream. 0:06:16.880 --> 0:06:19.120 And you know, we're happy to be, you know, playing 0:06:19.120 --> 0:06:20.719 our role in it. You know, our goal is to 0:06:20.760 --> 0:06:23.400 provide our customers with what they want, and we believe 0:06:23.480 --> 0:06:25.760 that this, you know, this effort really hits the nail 0:06:25.760 --> 0:06:27.640 on the head in that regard. Now, I want to 0:06:27.680 --> 0:06:29.960 point out that unless you've been living under a rock, 0:06:31.120 --> 0:06:34.520 you will have seen that Hurts has a pitchman and 0:06:34.560 --> 0:06:37.680 its new commercials for these electric vehicles, these Tesla's. He 0:06:37.800 --> 0:06:40.160 happens to be a super Bowl winning quarterback. His name 0:06:40.240 --> 0:06:44.080 is Tom Brady. Tom, Here's what I've been wondering. Why 0:06:44.200 --> 0:06:48.720 would a super Bowl winning quarterback you choose to star 0:06:49.640 --> 0:06:52.680 in ads for a rental car company? What is it 0:06:52.720 --> 0:06:56.800 about the Hurt story and the transformation plan that resonates 0:06:56.800 --> 0:07:00.560 with Tom Brady? Well, first of all, good morning. Uh, 0:07:00.720 --> 0:07:02.920 nice to see You've got some great guys up there 0:07:02.920 --> 0:07:04.760 on the stage with you, And wish I could be 0:07:04.760 --> 0:07:07.359 there in New York, but I got football practice today, 0:07:07.400 --> 0:07:10.920 so I got to do my job. I think obviously 0:07:10.920 --> 0:07:14.120 it starts with incredible leadership, and I think Tom, Greg 0:07:14.160 --> 0:07:17.840 and Mark really provide that. And uh, you know, I've 0:07:17.840 --> 0:07:21.560 got great faith in the leadership team, and I think 0:07:21.600 --> 0:07:26.000 they're building and reinventing a great business. I've been someone 0:07:26.040 --> 0:07:29.320 who's uh been a customer of Hurts for a long time, 0:07:29.520 --> 0:07:32.800 and I think their move to electrical vehicles is super important. 0:07:32.840 --> 0:07:37.040 And when Tom talked about what the opportunity was, um, 0:07:37.080 --> 0:07:40.119 you know, for him in this business, I certainly wanted 0:07:40.160 --> 0:07:42.880 to do my best to help promote people who are 0:07:43.400 --> 0:07:46.240 changing the world in a really positive way. So we 0:07:46.320 --> 0:07:49.720 talked so much about sustainability and actions that you can 0:07:49.760 --> 0:07:52.800 do on a daily basis that are sustainable for now 0:07:52.840 --> 0:07:55.280 in the future. And you know, this is one of 0:07:55.280 --> 0:07:58.040 those areas that you know, I feel really strongly about 0:07:58.120 --> 0:08:00.880 and I love partnering with you know, a great business, 0:08:00.880 --> 0:08:02.720 a great business team that has a great mission. So 0:08:02.720 --> 0:08:05.880 it's a really fun campaign and I hope people really 0:08:05.920 --> 0:08:10.640 enjoy it. You drive an e v right, Tom, I do, 0:08:10.840 --> 0:08:13.360 and I have for for quite a few years. Which 0:08:13.400 --> 0:08:15.400 model and what was it that made you an e 0:08:15.480 --> 0:08:20.240 Vy convert? Well, I've had a Tesla for about four years. 0:08:20.440 --> 0:08:24.200 And again I think it's a it's kind of the 0:08:24.240 --> 0:08:26.120 direction to the world is heading, and I think for me, 0:08:26.160 --> 0:08:30.160 it was about being really conscious about, obviously the impact 0:08:30.240 --> 0:08:34.480 that we all have on on our planet and the 0:08:34.600 --> 0:08:38.880 things that we can do as individuals to make progress 0:08:38.880 --> 0:08:44.440 in the airs of sustainability. And um, I love the cars. Uh, 0:08:44.520 --> 0:08:47.120 there's a lot of companies that have followed suit, obviously, 0:08:47.320 --> 0:08:50.160 and as the guys up there, as Tom greg Mark 0:08:50.520 --> 0:08:53.240 talked about, that's kind of where where everyone's heading, and 0:08:54.640 --> 0:08:56.560 you know, it's a really cool time to be a 0:08:56.559 --> 0:08:59.320 car lover, and I certainly have and Tom always gives 0:08:59.360 --> 0:09:01.880 me a Nobody loves cars as much as Tom Wagner, 0:09:01.920 --> 0:09:04.520 believe me, and he always kind of keeps me in 0:09:04.559 --> 0:09:07.280 tune with what's going on, and he's really on the 0:09:07.320 --> 0:09:11.920 forefront of the really cool aspects of carmaking. Tom, you're 0:09:12.000 --> 0:09:16.520 lending the credibility of the Tom Brady brand, so the 0:09:16.600 --> 0:09:19.960 Hurts brand. What is it about sustainability that resonates with 0:09:20.000 --> 0:09:24.679 your personal philosophy and are you deliberately trying to raise 0:09:24.760 --> 0:09:31.160 awareness around topics such as climate change. I think it's 0:09:31.200 --> 0:09:34.680 absolutely and I think it's um in a really broad, 0:09:35.040 --> 0:09:38.640 you know, a scheme of things. It's about raising consciousness 0:09:38.800 --> 0:09:42.720 about you know, what sustainability means that you know, correlate 0:09:42.840 --> 0:09:44.679 so many of the things that are happening, you know, 0:09:44.760 --> 0:09:47.280 in my personal life to you know, my business life. 0:09:47.400 --> 0:09:51.240 And you know, I've thought so much about sustainability of 0:09:51.280 --> 0:09:52.800 my own body and what I need to do in 0:09:52.880 --> 0:09:55.120 order to treat my body a certain way so that 0:09:55.400 --> 0:09:58.320 it can continue to perform at a high level. And 0:09:58.360 --> 0:10:00.880 I think businesses are doing the same. You know, people 0:10:00.960 --> 0:10:05.719 want to understand areas in which they can be more sustainable. Um. 0:10:05.760 --> 0:10:09.079 Certainly to help the environment, and you know, raising consciousness 0:10:09.080 --> 0:10:12.720 through electric vehicles and you know, things that we do 0:10:12.760 --> 0:10:15.040 on a daily basis. You know, as we talked about 0:10:15.040 --> 0:10:17.719 the mobility of where we all are. I'm someone that 0:10:17.800 --> 0:10:20.120 travels a lot. You know, I'm very mobile. But if 0:10:20.160 --> 0:10:23.280 I can do that in a more conscious way, um, 0:10:23.320 --> 0:10:26.360 you know, I think that's a great thing for the future. Tom. 0:10:26.400 --> 0:10:30.080 A quick question back to Greg O'Hara here. Tom Brady 0:10:30.080 --> 0:10:34.480 has redefined sustainability. Is it concerns the human body? You 0:10:34.520 --> 0:10:36.800 guys are now in all of you are in the 0:10:36.880 --> 0:10:39.840 travel business versus in the Why is sustainability to the 0:10:39.880 --> 0:10:43.480 new theme, the new mantra and travel. It's not lost 0:10:43.520 --> 0:10:46.160 on me the dichotomy between me and Tom Brady. Um, 0:10:46.760 --> 0:10:52.120 uh and and and are sustainable bodies? Um? Mine's more disposable, 0:10:52.160 --> 0:10:55.480 I think than distinct and sustainable. Um. You know. One 0:10:55.559 --> 0:10:58.480 of the things that that people don't realize is, you know, 0:10:58.559 --> 0:11:01.120 Tom said a lot of things about why he does it. 0:11:01.559 --> 0:11:03.480 One of the things that we can do as financial 0:11:03.480 --> 0:11:09.000 investors is promote an investment opportunity to people that allows 0:11:09.080 --> 0:11:15.480 them to invest profitably in in the um environmentally conscious area, right. 0:11:15.760 --> 0:11:18.480 And if you look at what we've what we've created here, 0:11:18.559 --> 0:11:21.560 it's an opportunity of a business that creates actual cash 0:11:21.559 --> 0:11:25.360 flow in the near term. And we can transform hundreds 0:11:25.360 --> 0:11:28.839 of thousands of vehicles and electrify them. Um not just that, 0:11:28.920 --> 0:11:33.560 but turn them into robotaxis. Our offer, we believe to 0:11:33.559 --> 0:11:38.000 two Uber creates better opportunities for Uber drivers. Um uh. 0:11:38.040 --> 0:11:41.000 And we've got all kinds of things in the in 0:11:41.040 --> 0:11:43.400 the pipe. Not only that, but you know, the rental 0:11:43.400 --> 0:11:45.280 car experience has been the same for fifty years, and 0:11:45.320 --> 0:11:47.600 we're going to try to automate that rental car experience 0:11:47.720 --> 0:11:49.360 so that when you get to the airport, you just 0:11:49.400 --> 0:11:51.240 show up, hold your phone to the car and go. 0:11:51.840 --> 0:11:55.520 Greg O'Hara, Mark Fields, the two Toms, one more recognizable 0:11:55.520 --> 0:11:58.280 than the other, Tom Waggoner and of course Tom Brady. 0:11:58.320 --> 0:12:02.319 We thank you all, and back to yet another recognizable Tom, 0:12:02.360 --> 0:12:11.960 Tom Keane, Eric Chesker, thank you. Sony Cupt you honest 0:12:11.960 --> 0:12:14.439 with us right now. He's the chief executive officer of Marriott. 0:12:14.600 --> 0:12:17.920 We're going to dive into an extended conversation here, Tony, 0:12:18.000 --> 0:12:20.719 I want to talk about Marriott optimism. You're leading to 0:12:20.840 --> 0:12:24.960 country with construction of a hundred and sixty six thousand, 0:12:24.400 --> 0:12:27.880 one seventy four rooms right now. I assume that's globally 0:12:28.520 --> 0:12:31.520 as well. Tell us about the optimism in the middle 0:12:31.520 --> 0:12:35.960 of a pandemic that gets you to build twelve hundred projects. Yeah, 0:12:35.960 --> 0:12:38.120 we actually good morning by the way, Tom, it's it's 0:12:38.160 --> 0:12:41.000 good to be back. We have about over two hundred 0:12:41.000 --> 0:12:45.080 thousand rooms under construction globally, and I think that optimism 0:12:45.760 --> 0:12:48.960 is really based on our belief about the long term 0:12:49.040 --> 0:12:51.640 future of travel and tourism. Because of some of the 0:12:51.679 --> 0:12:55.320 supply chain issues, we are seeing some delays in construction, 0:12:55.600 --> 0:12:58.000 so many of these hotels won't open for one to 0:12:58.240 --> 0:13:00.720 maybe even three years. Are you I don't mean to 0:13:00.720 --> 0:13:02.880 interrupt the Ford I know John and Lisa have a 0:13:02.880 --> 0:13:05.320 ton of questions to Lisa's looking for a new Marriott 0:13:05.400 --> 0:13:08.760 right where she lives. Uh to go in Tony. I'm 0:13:08.800 --> 0:13:11.840 looking here at your big impediment, which is the US government. 0:13:12.000 --> 0:13:15.120 How big an impediment has the Biden administration been in 0:13:15.160 --> 0:13:18.640 their reticence to open up as we improve in this 0:13:18.760 --> 0:13:22.160 terrible pandemic. Well, while we were disappointed and lobbied the 0:13:22.160 --> 0:13:25.120 administration hard to get the borders open. Yesterday was a 0:13:25.160 --> 0:13:29.320 big day for US obviously, seeing international borders open. I've 0:13:29.360 --> 0:13:33.679 been traveling extensively internationally and there is enormous pent up 0:13:33.679 --> 0:13:36.880 demand from international travelers to come to the US. So 0:13:36.920 --> 0:13:40.520 I think today yesterday was a watershed day for the 0:13:40.559 --> 0:13:43.000 travel on tourism industries. It's Tony, We're all living in 0:13:43.480 --> 0:13:45.640 the amount is back big time, has being for most 0:13:45.640 --> 0:13:47.480 of this year. You're aware of that. How are you 0:13:47.600 --> 0:13:50.000 meeting that at the moment, just in terms of getting 0:13:50.040 --> 0:13:51.920 the talent on board when you need to where you 0:13:51.960 --> 0:13:54.000 need them. How difficult is it at the moment signing 0:13:54.280 --> 0:13:57.240 It's improving, Jonathan, as you as you know one in 0:13:57.400 --> 0:13:59.640 five of the jobs that were lost in this country 0:13:59.760 --> 0:14:02.720 during a pandemic, we're in the travel and tourism sector. 0:14:03.400 --> 0:14:06.040 We've hired more than forty thou folks here in the 0:14:06.160 --> 0:14:09.120 US since the beginning of the year. The challenge for 0:14:09.240 --> 0:14:12.760 US is the most acute difficulties we're having are in 0:14:12.800 --> 0:14:16.080 the markets where demand has come back most quickly. Um. 0:14:16.120 --> 0:14:19.000 But we think we've got a really compelling offering for 0:14:19.400 --> 0:14:23.440 future merit associates and we're seeing really good progress both 0:14:23.480 --> 0:14:26.760 in terms of the increases in the applicant pool and 0:14:26.880 --> 0:14:28.960 the number of folks that were able to bring on board. 0:14:29.000 --> 0:14:31.600 Have you had to shift the price to make that happen, Sony, 0:14:31.880 --> 0:14:34.160 or is that something to time is healed over the 0:14:34.240 --> 0:14:36.920 last year. Yeah, there's a bit of of wage pressure 0:14:36.960 --> 0:14:39.800 again in some of the markets that have recovered most quickly, 0:14:40.200 --> 0:14:43.520 But again a lot of our focus is on UH 0:14:44.000 --> 0:14:47.600 career growth, training and development opportunities and in some markets 0:14:47.640 --> 0:14:51.200 some one time incentives to fill those vacancies. How much 0:14:51.240 --> 0:14:53.400 have you been able to pass along the costs to 0:14:53.600 --> 0:14:56.880 the end consumer to people renting a room. Well, the 0:14:57.520 --> 0:15:00.800 really encouraging thing we saw in the third quarter, Lisa, 0:15:01.320 --> 0:15:05.040 we said that that revenue per available room globally was 0:15:05.080 --> 0:15:09.200 only twenty six percent behind where we were same quarter nineteen, 0:15:09.520 --> 0:15:13.760 But interestingly, average daily rate, which really equates to pricing power, 0:15:14.120 --> 0:15:16.520 was only four percent off where we were in the 0:15:16.520 --> 0:15:20.080 same quarter of nineteen. So we've seen really strong pricing 0:15:20.120 --> 0:15:22.560 power through the recovery. When it comes to hiring, Tony, 0:15:22.600 --> 0:15:25.480 I do wonder how many people just said, who used 0:15:25.480 --> 0:15:27.360 to work in the industry, I don't want to deal 0:15:27.400 --> 0:15:30.120 with the hospitality industry anymore. It was really hard for 0:15:30.160 --> 0:15:31.880 me to be sent home for more than a year. 0:15:32.080 --> 0:15:33.320 I don't want to have to deal with people, and 0:15:33.400 --> 0:15:35.560 I'm still worried about a virus. It's going to take 0:15:35.600 --> 0:15:37.840 more than just a higher salary to get me back. 0:15:38.000 --> 0:15:40.200 How much is that what you're facing when you try 0:15:40.200 --> 0:15:43.760 to bring on more people. I spoke at a CEO 0:15:43.880 --> 0:15:47.000 panel yesterday at the n y U Investment Conference, and 0:15:47.040 --> 0:15:50.440 as you might expect, this was the most significant topic, 0:15:50.800 --> 0:15:52.880 and it was really around the work we need to 0:15:52.880 --> 0:15:57.800 do as an industry deliberately to identify the prospective future employees, 0:15:57.840 --> 0:16:01.120 the opportunities that exist. I think travel and tourism for 0:16:01.280 --> 0:16:05.080 many years was viewed as a safe harbor set of industries, 0:16:05.320 --> 0:16:07.960 and to your point, the impact of the pandemic has 0:16:08.000 --> 0:16:10.360 shaken some of that confidence. So we've got some real work. 0:16:10.440 --> 0:16:12.400 I want to talk about the tension that you deal 0:16:12.480 --> 0:16:16.640 with every day. You've provided leadership with save Venice over 0:16:16.680 --> 0:16:20.080 the travesty of the boats and the ships right up 0:16:20.120 --> 0:16:23.680 against the Basilicas and Marco. The view from the Grand 0:16:23.680 --> 0:16:26.200 Canal room of the St. Regis is pretty good. What's 0:16:26.200 --> 0:16:30.760 it go for at night? As high as we can go? 0:16:30.920 --> 0:16:35.280 But um it's uh an extraordinary hotel. I was just 0:16:35.320 --> 0:16:38.600 there three weeks ago. The renovation is stunning. How do 0:16:38.680 --> 0:16:40.640 you cut this then? How do you cut all the 0:16:40.720 --> 0:16:44.600 population you want back? So Venice will sink versus your 0:16:44.600 --> 0:16:49.120 save Venice efforts. Well, it's it's an interesting dynamic and 0:16:49.160 --> 0:16:52.400 it's not limited to Venice. There are many cities and 0:16:52.920 --> 0:16:56.280 tourist destinations around the world that are wrestling with this 0:16:56.440 --> 0:16:59.480 notion of over tourism. John, I can see you, John 0:16:59.520 --> 0:17:04.200 and the Grand Canal of the CEO of Mary. This 0:17:04.240 --> 0:17:07.200 sounds very personal to you, Toh, not to me, because 0:17:07.240 --> 0:17:09.080 we know there's an annual visit that you make to 0:17:09.240 --> 0:17:12.080 Venice every single year around Christmas. Just think the St 0:17:12.119 --> 0:17:14.560 Regis has a certain view of the Grand Canals, sort 0:17:14.560 --> 0:17:18.200 of caring with Gucci behind it. It works. That's Italy, Tony, 0:17:18.400 --> 0:17:19.960 let's talk about this and put you on the spot 0:17:20.000 --> 0:17:21.879 just a little bit. You've been going around the world, 0:17:22.320 --> 0:17:25.200 looking across geography, is working out who's got this right 0:17:25.320 --> 0:17:28.560 right now, you're perfectly positioned to talk about it. Everybody's 0:17:28.560 --> 0:17:30.760 got a different policy. You've got zero COVID over in 0:17:30.880 --> 0:17:33.680 China's got very different tolerance levels around the world. Who's 0:17:33.680 --> 0:17:35.720 got it right right now, as far as you're concerned 0:17:35.720 --> 0:17:39.080 operating a business there, I'm not sure anybody has it perfect. 0:17:39.400 --> 0:17:43.520 And that's not a criticism. The most challenging thing for 0:17:43.560 --> 0:17:46.160 all of us that are trying to navigate this there's 0:17:46.200 --> 0:17:48.440 no playbook. None of us were around for the last 0:17:48.480 --> 0:17:54.040 great pandemic, and it's so unpredictable. Use you mentioned China 0:17:54.600 --> 0:17:57.439 during our second quarter earnings call, we talked about the 0:17:57.440 --> 0:18:00.040 fact that China was back to pre pandemic level. It 0:18:00.119 --> 0:18:02.320 is not only an aggregate, but in each of our 0:18:02.400 --> 0:18:06.600 demand segments. You fast forward a quarter, you saw some outbreaks, 0:18:06.600 --> 0:18:09.520 you saw a hundred and fifty cities lockdown, and that 0:18:09.640 --> 0:18:12.719 had exactly the impact on demand you would expect. And 0:18:12.800 --> 0:18:16.080 so I think we're trying to share best practices. We're 0:18:16.160 --> 0:18:19.439 looking at at cities and countries that seem to have 0:18:19.480 --> 0:18:21.920 it right, but I'm not sure there's a perfect solution. Tony, 0:18:21.920 --> 0:18:23.960 good to catch up. Can you take Tom to Venice 0:18:24.000 --> 0:18:25.840 with you next time? Just give us a break and 0:18:26.320 --> 0:18:29.560 you enjoy anytime. I'll pay for the boat sounds good 0:18:29.560 --> 0:18:31.879 to me. Sounds good to have no idea, John, what 0:18:31.960 --> 0:18:35.200 those boats costs, the power boats, and particularly one to 0:18:35.280 --> 0:18:37.760 marry I would do those gorges wooden boat things. They 0:18:37.760 --> 0:18:40.199 got what we feel like we're a template for his 0:18:40.280 --> 0:18:42.960 planning on vacation. Has nothing to do with a proper 0:18:42.960 --> 0:18:47.119 interviews and everything to you see me in a gondola, 0:18:47.240 --> 0:18:48.760 I mean I could see you in the back tell 0:18:48.840 --> 0:18:51.240 making it happen. I could, I could see it making 0:18:51.240 --> 0:18:53.240 it happen. Sony. Good to catch up, so as always 0:18:53.280 --> 0:18:55.600 look forward to catching up soon, Sonny camp Of one 0:18:55.600 --> 0:19:03.960 of that Thank you, sir. We are thrilled to Claudius 0:19:03.960 --> 0:19:07.920 Som joins us today Bloomberg opinion columnists, but really one 0:19:07.920 --> 0:19:11.200 of the most articulate voices in um what I'm gonna 0:19:11.200 --> 0:19:15.879 call the social policy of the Fed, Claudius, Um, should 0:19:15.920 --> 0:19:22.439 we pick a FED chairman based on politics and social belief? So? 0:19:22.600 --> 0:19:26.080 Absolutely not. But the reality is the Federal Reserve is 0:19:26.119 --> 0:19:29.480 in Washington, d C. And it is impossible to escape 0:19:29.480 --> 0:19:33.399 politics and all of those positions. And Biden has now 0:19:33.480 --> 0:19:37.040 got five. He's get to a point. These are political appointees. 0:19:37.400 --> 0:19:41.160 So I firmly disagree with people who have been advocating 0:19:41.320 --> 0:19:45.120 for Biden to have his chair, like knocking Powle out 0:19:45.160 --> 0:19:48.440 just because he was a registered Republican and Trump put 0:19:48.520 --> 0:19:51.520 him in place. But I mean, you know, if Ide 0:19:51.600 --> 0:19:54.080 wants to do that, that is his choice. What is 0:19:54.119 --> 0:19:57.959 so interesting, Claudia, is if you look at the Wikipedia 0:19:58.119 --> 0:20:02.439 for both Powell and Brainerd, it is absolutely stunning the 0:20:02.520 --> 0:20:07.439 different path from Wesleyan College or Wesleyan University, I should say, 0:20:07.480 --> 0:20:11.320 in Princeton University. Have you ever seen a separation of 0:20:11.359 --> 0:20:16.639 two candidates as we see now? I'm not sure about that. 0:20:16.720 --> 0:20:20.840 I think that because Greenspan was there so long, I 0:20:20.880 --> 0:20:24.840 don't What I have been adamant about is that how 0:20:25.000 --> 0:20:29.679 Embrainered are an amazing team. Like together they do so 0:20:29.760 --> 0:20:32.119 much more. And I think this could very well be 0:20:32.119 --> 0:20:35.560 because they come at it from different backgrounds. How has 0:20:35.680 --> 0:20:40.080 looked to Brainerd for a lot of intellectual leadership. I 0:20:40.119 --> 0:20:43.000 think they would be in a like a really knock 0:20:43.040 --> 0:20:46.560 it out of the park palace chair laylis vice chair 0:20:47.280 --> 0:20:51.000 that's often a chair and waiting position. Uh I just 0:20:51.119 --> 0:20:54.320 I think it. The vent is navigating the most difficult 0:20:54.359 --> 0:20:57.679 period in its history since the Vulgar Area, and you 0:20:57.920 --> 0:21:01.000 era and you absolutely need the US people in all 0:21:01.080 --> 0:21:03.840 five of those pointed positions, Claudia, one of the difference 0:21:03.920 --> 0:21:07.000 is that people have pointed to between a Leo Brainard 0:21:07.040 --> 0:21:09.680 as well as J. Powell, is that Leo Brainard might 0:21:09.720 --> 0:21:12.800 be willing to look plast inflation and actually increase the 0:21:12.840 --> 0:21:15.720 target a bit more to allow inflation to run it 0:21:15.800 --> 0:21:19.520 perhaps a more persistent three percent rather than a two percent. 0:21:19.680 --> 0:21:22.080 Do you agree with that assessment of her view and 0:21:22.119 --> 0:21:25.919 the potential for that to really shift FED policy? So 0:21:26.000 --> 0:21:29.840 I think Jay is is as committed to the new framework, 0:21:30.280 --> 0:21:33.639 which importantly, and we're going to talk about it a 0:21:33.680 --> 0:21:37.520 lot more this year, has broad based and inclusive employment. 0:21:38.160 --> 0:21:40.320 I truly believe Jay is the real deal on that. 0:21:40.400 --> 0:21:44.480 Leo absolutely is, and I don't think we have a 0:21:44.600 --> 0:21:47.520 choice now whether we're moving toward a three percent target, 0:21:47.600 --> 0:21:50.879 that's a completely different discussion. And neither of them is 0:21:50.960 --> 0:21:53.199 going to I don't think they're going to need to 0:21:53.240 --> 0:21:56.320 go there, right, but but I think either of them 0:21:56.359 --> 0:21:59.440 will do what it takes and are committed to really 0:21:59.520 --> 0:22:03.439 elevate on par the maximum pointment Mandy, And that is 0:22:03.480 --> 0:22:06.520