US business travel is back but it looks different, hotel CEOs say

By Doyinsola Oladipo

(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 (NYSE:) Corp 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 (EPA:) 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 (NASDAQ:) Chief Executive Officer Anthony Capuano. “To get the dates, space and cities that [clients] 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.