Hotel industry leaders at a recent conference in New York said U.S. business travel, while clearly not what it was pre-pandemic, is rebounding strongly. The New York University International Hospitality Industry Investment Conference found that companies, from small businesses to large corporations, are booking more domestic travel and paying more for it than they did pre-pandemic.
Hyatt Hotels Corporation, which caters primarily to large corporate clients, has seen a notable increase in corporate clients. According to Hyatt CEO Mark Hoplamazian, the company's corporate client base has grown 12% year-to-date through April, and total business travel spending has increased 6% year-over-year. This trend confirms the surge in domestic business travel demand among large corporations.
Accor CEO Sébastien Bazin echoed this sentiment, highlighting that rates for large corporations are expected to rise 5-8% over the next 12 months, driven by a shift in the mix of business travel as companies focus more on U.S.-based travel.
While long-distance international business travel has taken a back seat, domestic travel has seen a notable increase. Small businesses are on the front lines of the recovery, organizing frequent business trips closer to home. These changes have led to hotels prioritizing regular in-person meetings, resulting in a steady increase in repeat business.
Additionally, the recovery in business travel is also driving a resurgence in group business travel, which is driving up demand and prices. Anthony Capuano, CEO of Marriott International, highlighted that group business is currently the strongest segment. Organizations are eager to secure dates, space and locations well in advance, with some planning five to seven years in advance. This long-term planning highlights the interest and commitment of groups to hosting large meetings and events.
Hyatt's Hoplamazian also noted that group travel, which includes essential meetings and conferences, is seeing mid-single-digit rate increases — a sign of robust demand for group travel as businesses and organizations seek to reconnect through in-person gatherings.
