US Business Travel Is Rebounding

Business travel in the United States is experiencing a robust resurgence, though it looks markedly different from its pre-pandemic form, according to hotel industry leaders at a recent New York conference. The NYU International Hospitality Industry Investment Conference revealed that companies, ranging from small enterprises to large corporations, are increasingly booking domestic trips at higher volumes and prices compared to before the pandemic.

Hyatt Hotels Corp, which primarily serves larger corporate clients, has observed significant growth in corporate accounts. According to Mark Hoplamazian, Hyatt’s chief executive officer, the company’s corporate accounts increased by 12% year-to-date in April, and total business travel has risen by 6% compared to the previous year. This trend underscores the burgeoning demand for domestic business travel among larger corporations.

Accor’s CEO Sebastien Bazin echoed these sentiments, highlighting that the pricing for large corporate accounts is expected to rise between 5% and 8% over the next year. This price surge is attributed to the evolving business travel mix, with companies now focusing more on U.S.-based trips.

While long-haul international business trips have taken a back seat, domestic travel is seeing a notable uptick. Small and medium-sized enterprises (SMEs) have been at the forefront of this recovery, frequently organizing trips that are closer to home. This shift has created a steady stream of repeat business for hotels, as these companies prioritize regular in-person meetings.

Moreover, the rebound in business travel is also stimulating a revival in group business travel, with demand and prices on the rise. Marriott International’s chief executive officer, Anthony Capuano, emphasized that group business is currently the strongest performing segment. Organizations are eager to secure dates, space, and locations well in advance, with some planning as far as five to seven years ahead. This long-term planning highlights the high level of interest and commitment among associations to organize large meetings and events.

Hoplamazian of Hyatt further noted that group business, which includes significant meetings and conferences, is experiencing mid-single-digit price growth. This trend reflects the robust demand for group travel as companies and associations strive to reconnect through in-person gatherings.