Business travel in the United States is rebounding, with companies of all sizes booking trips at higher levels and prices compared to before the pandemic. While international business travel remains low, there is a notable increase in U.S. trips being booked. Small- and medium-sized enterprises have been leading the recovery for the past couple of years, but large corporate bookings are also on the rise.
Hyatt Hotels Corp CEO Mark Hoplamazian stated that corporate accounts are up 12% year-to-date in April, with total business travel increasing by 6% year-over-year, primarily serving larger corporate clients. Accor CEO Sebastien Bazin noted that smaller- and medium-sized enterprises are generating more repeat business as they prioritize meeting more often and closer to home. Pricing for large corporate accounts has seen an increase of about 5% to 8% for the next 12 months, indicating a shift in the business travel mix.
The resurgence in business travel is also driving a recovery in group business travel at higher prices. Marriott International CEO Anthony Capuano stated that the group segment is currently the strongest performing segment, with clients booking years in advance to secure preferred dates, space, and cities. Hyatt’s Hoplamazian added that associations are showing a significant interest in securing the dates they need for large meetings, leading to mid-single digit price growth in some cases.
Overall, the return of business travel is evident in the market, with a shift towards domestic trips and a notable increase in both small- and large-scale corporate bookings. The industry is optimistic about the future trajectory of business travel as companies continue to prioritize in-person meetings and events.
