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US business travel is back but it looks different, hotel CEOs say
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US business travel is back but it looks different, hotel CEOs say
Jun 4, 2024 9:50 AM

June 4 (Reuters) - Business travel has returned to the

United States, hotel executives at a New York industry

conference said this week, as companies of all sizes are

increasingly booking trips at higher levels and prices than

before the pandemic.

Corporations are eschewing long-haul international business

travel, however, and are instead prioritizing U.S. trips. Small-

and medium-sized enterprises have led the recovery over the past

couple of years, but large corporate bookings are rising as

well.

"Business travel is back and it is on a steady rise," Hyatt

Hotels Corp ( H ) Chief Executive Officer Mark Hoplamazian said

late on Monday at the NYU International Hospitality Industry

Investment Conference.

Hoplamazian said the company's corporate accounts in April

are up 12% year-to-date and total business travel is up 6%

cumulatively year-over-year. Hyatt primarily serves larger

corporate clients.

Smaller- and medium-sized enterprises generate more repeat

business as they prioritize meeting more often and closer to

home, said Accor Chief Executive Officer Sebastien

Bazin.

Pricing for large corporate accounts is up about 5% to 8%

for the next 12 months, he said.

"Business is back but it's a different business travel mix,"

he said.

The business travel rebound is also fuelling a recovery in

group business travel, and at higher prices.

"Group is the strongest performing segment right now," said

Marriott International Chief Executive Officer Anthony

Capuano. "To get the dates, space and cities that

want, they are saying 'can I book five, six, seven years out',"

he said.

There is a tremendous level of interest by associations to

get the dates they need, said Hyatt's Hoplamazian.

"In some cases group business, this is large meetings, it's

pretty significant mid-single digit price growth, " said Hyatt's

Hoplamazian.

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