During a New York industry conference, hotel executives discussed the resurgence of business travel in the United States, noting that companies of all sizes are booking trips at higher levels and prices compared to pre-pandemic times. While international travel remains limited, U.S. trips are a top priority for corporations.
Small- and medium-sized enterprises have spearheaded the recovery in business travel over the past few years, but large corporate bookings are also on the rise. According to Hyatt Hotels Corp CEO Mark Hoplamazian, the company’s corporate accounts have seen a 12% increase year-to-date in April, with overall business travel up by 6% cumulatively year-over-year.
Accor CEO Sebastien Bazin highlighted that smaller- and medium-sized enterprises prioritize more frequent meetings closer to home, leading to repeat business. Pricing for large corporate accounts is expected to rise between 5% to 8% over the next 12 months, reflecting the evolving business travel mix.
The rebound in business travel has also boosted group travel, with Marriott International CEO Anthony Capuano noting that it is currently the strongest-performing segment. Associations are expressing interest in booking several years in advance to secure desired dates, spaces, and cities for their events.
Hyatt’s Hoplamazian added that there has been significant mid-single-digit price growth for large meetings, indicating a positive outlook for the group business travel sector. The resurgence in business travel signals a gradual recovery for the hospitality industry as well.