*

Leisure travel demand from lower-income customers down

*

Marriott ( MAR ) to cut 800-plus corporate jobs in first quarter

*

Booking.com and Vail Resorts ( MTN ) plan workforce reductions

By Doyinsola Oladipo

NEW YORK, Nov 26 (Reuters) - U.S.-based travel

companies, from Marriott International ( MAR ) to Booking

Holdings ( BKNG ). are trimming their budgets and workforce

ahead of next year as falling leisure travel demand from

lower-income travelers hits top-line growth.

Diminished demand for budget hotels reduced growth in the

hotel business in 2024, and that trend is expected to continue

in 2025. Real estate analytics company CoStar and global travel

data firm Tourism Economics in November downgraded their 2025

outlook for room revenue growth to 1.8% from 2.6%.

"We anticipate these recent trends to moderate and for

overall demand growth to be slightly stronger next year," said

Aran Ryan, director of industry studies at Tourism Economics, a

subsidiary of Oxford Economics, as higher income consumers still

have strong intentions to travel.

The cuts are happening across the leisure industry, from

hotels to travel bookers to resorts. Hotel operator Marriott ( MAR )

told investors in this month that it will cut its annual pre-tax

and administrative costs by $80 million to $90 million, and

later said it would lay off more than 800 corporate-level

employees in the first quarter.

"Marriott ( MAR ) is going to implement layoffs early next year as the

result of a poor earnings turnout," said Sylvia Jablonski, chief

investment officer of Defiance ETFs. "This sounds like a move

towards running a leaner and more efficient Marriott ( MAR )."

Online travel agency Booking.com, a brand of Booking Holdings ( BKNG )

, said it could cut jobs after already slowing its

headcount growth in the last year. In the third quarter,

Booking's workforce increased 3% year-over-year compared to a

13% increase the year prior.

"We are being more efficient and we are very careful with

hiring," Booking Chief Financial Officer Ewout Steenbergen told

investors on an earnings call.

Ski resort operator Vail Resorts ( MTN ) said it is planning

$100 million in annualized cost savings by the end of 2026, with

plans to cut 14% of its corporate workforce.

Some companies have said they will rely more on automation to

lower costs. Norwegian Cruise Line Holdings ( NCLH ) is planning

$300 million of savings through 2026 amid record demand for

cruise travel as it consolidates back-office activity through

the use of low-cost technology.

Timeshare company Marriott Vacations Worldwide ( VAC ),

which split from Marriott International ( MAR ) in 2011, plans to save

$50 to $100 million annually over the next two years, in part

through automation efforts.