YOUR ECONOMY

✈️ Revenge Travel Is Here to Stay

What’s Revenge Travel?

“Revenge travel” is the rush of people eager to board flights, hotels, and cruises in order to make up for lost travel time during the pandemic.

Since 2022 brought on some of the highest inflation in decades, experts weren’t sure if the post-pandemic travel boom would continue. After all, the higher cost of living reduces the amount people can pay for flights or other travel expenses. However, it looks like revenge travel is here to stay.

According to a survey by Expedia, not only do people plan to keep traveling in 2023, but over 40% of people surveyed said they are actually increasing their travel budget.

Booking Earlier and Longer

People are expanding both their itineraries and travel habits.

To start, many travelers are now booking trips much longer in advance. This is one of the best ways to take advantage of cheaper rates for flights, hotels, and rental cars. Plus, a pre-booked trip can build anticipation by giving you something to look forward to.

On top of that, once they reach their destination, many travelers are opting to stay for longer periods of time. Even though this entails a bigger expense upfront, it can mean more bang for your buck once you’ve arrived at your destination.

There is even data that suggests people are spending more on in-trip activities throughout the duration of their vacation.

A Crucial Travel Tip

If you plan on traveling in 2023, be sure to read the fine print on your credit card rewards statement.

Almost everyone knows that credit cards offer rewards for spending that can be redeemed for travel expenses. But did you know that many credit cards also offer perks such as travel and rental car insurance, or discounts on partner brands? Not only can this keep you financially protected while you travel, but it can also save you money in the short term.

If your card doesn’t offer these perks, consider signing up for one that does. Revenge is a dish best served cold – which means plenty of planning and forward-thinking is key to revenge traveling.

Psst... Did you know you can use Allio's goal feature to save and invest for your next vacation?

😐 "Mislabeled Managers" Are Being Misled

What Are “Mislabeled Managers”?

Studies suggest many large corporations are deliberately mislabeling employees as managers. This title change and the accompanying salary allows the company to take advantage of a loophole: they don’t have to pay the “salaried manager” overtime.

Managers are often asked to work more than 40 hours a week – sometimes up to 60 or more. While the title change tends to come with a raise, this sort of workload may still mean your hourly rate would come in below minimum wage. As an “employee”, this would be illegal. But, because you’re a “manager” with a salary over the federal cutoff, the company doesn’t have to pay you for the overtime work they’re requiring.

On top of that, the company can drive down labor costs even further by staffing as few employees as possible and leaning on its managers to pick up the slack. This practice is common in industries like retail, dining, and janitorial services, but can also occur in white-collar roles like tech and banking.

Where’s the Evidence?

The supporting data comes from a handful of different studies. From 2010 to 2019, federal data shows that the number of managers in the workforce increased by more than 25%, while the overall number of workers grew by just half that.

Additionally, there are 5 times as many managers at the federal salary cutoff level as there are regular employees.

Finally, a more recent study from 2019 to 2021 found that the workforce shrank by millions, while the number of managers didn’t budge.

All this evidence suggests that companies are indeed mislabeling employees as managers to save on overtime pay.

What Should You Do?

If you or someone that you know might have been mislabeled as a manager, it’s worth looking into. Some experts estimate that mislabeled employees are missing out on more than $3,000 per year in earnings!

In severe cases, consulting with a lawyer could even pay off. A Panera Bread franchise was sued for millions after failing to pay overtime to hundreds of assistant managers.

That said, there’s nothing wrong with working overtime or going above and beyond to help your company be successful. But you want to ensure you’re being fairly compensated for your work.

👟 Hilos: Pioneering 3D-Printed Shoes

Hilos Raises $3 Million

Hilos, a 3D-printed footwear startup based in Portland, Oregon, just raised $3 million from former Nike executives.

This investment will help the sustainable apparel brand scale its core technology, which uses 3D printing to make shoes. And, since it comes from former Nike managers, the investment doubles as an attention-grabbing endorsement that 3D printing could be a viable technology to manufacture shoes at scale. If Hilos can crack this code, it could solve several major environmental problems associated with the footwear industry.

Hilos CEO Elias Stahl has stated that many companies are experimenting with using more sustainable materials when making footwear. But few are focusing on the issues surrounding the industry’s wasteful production methods.

Shoe-Waste

Manufacturing footwear is inherently wasteful, not to mention time-consuming.

To start, the process to make a shoe is surprisingly lengthy and extensive. It requires 360 manufacturing steps and, typically, 65 separate parts. From there, since most shoes are produced in Southeast Asia, they must be shipped around the globe, which produces significant carbon emissions.

Finally, shoe companies have to manufacture thousands of shoes at once to be prepared for the demand. But not all of these shoes are highly popular and worn for years. Often, a major chunk of this inventory goes unsold.

The company estimates that 20% of all shoes go straight to landfills. This wasteful process is exactly what Hilos hopes to change.

Solving the Production Problem

Hilos tech prints shoes to order.

In other words, it waits until a customer purchases a shoe to actually create it. Since it has access to dozens of 3D printers, Hilos can make a new shoe available in less than 72 hours. This allows the company to drastically cut down on manufacturing and inventory waste. It also means Hilos doesn’t have to manufacture thousands of shoes at once and risk creating excess waste.

For reference, one 3D printer can make over 500 shoes per month. With its fresh funding, Hilos plans to ramp up its ability to churn out more sustainable footwear. So you don’t need to worry about your next pair of shoes coming from a sweatshop. It may well come from a printer.

POCKET CHANGE

Target is stepping up its convenience by offering both curbside pickup and delivery. Customers can even add-on Starbucks orders when they show up curbside to pick up or drop items off.

The Biden administration just approved the Alaska oil and drilling project, Willow. This controversial plan will allow ConocoPhillips to develop three well pads in Alaska, set to create 600 million barrels of oil over 30 years.

Generative AI is booming, but computing costs could keep the industry somewhat grounded. Unlike traditional software, applications like ChatGPT get more expensive to run with each additional user.

Supply chain issues, a labor shortage, and severe weather in Kentucky have led to a shortage of Girl Scout cookies. Opportunists are taking advantage of the shortage by reselling boxes online at major mark-ups.

Ford recalled 18 F-150 Lightnings after stalling production of the EV truck for about a month. The issue has to do with the truck’s battery pack, which has reportedly since been resolved.