Leisure Flattens, Hotel CEOs Welcome Wave of Business and Group Travel: Travel Weekly
Key Points:
* Hotel CEOs anticipate a resurgence in business and group travel in 2023 as leisure travel demand stabilizes. * Corporate meetings, conferences, and incentives are expected to drive business travel. * Group travel, including family reunions, weddings, and sports tournaments, is also expected to contribute to hotel occupancy. * Hotels are adapting their offerings and services to meet the evolving needs of business and group travelers.
Resurgence of Business and Group Travel
According to a recent survey by Travel Weekly, hotel CEOs are optimistic about a significant increase in business and group travel in 2023. This expected surge is attributed to several factors: *
Pent-up demand:
Companies are eager to resume business meetings, conferences, and incentives after pandemic restrictions. *
Economic recovery:
Improved business conditions are leading to increased corporate spending on travel. *
Hybrid work models:
Remote and hybrid work arrangements are making it easier for employees to attend meetings and events in different locations.
Evolving Needs of Business Travelers
Hotel CEOs recognize that the needs of business travelers have evolved. To meet these changing demands, hotels are adapting their offerings: *
Enhanced technology:
Providing high-speed Wi-Fi, remote workspaces, and video conferencing facilities. *
Flexible meeting spaces:
Offering a range of meeting rooms and event spaces to accommodate various group sizes and requirements. *
Personalized services:
Providing tailored services such as concierge services, business centers, and airport transportation.
Rise of Group Travel
Group travel is another key area of growth for the hotel industry. Hotels are increasingly catering to family reunions, weddings, sports tournaments, and other group events: *
Dedicated group amenities:
Offering group discounts, flexible booking options, and specialized packages. *
Event planning services:
Providing assistance with planning and coordinating group events. *
Community engagement:
Partnering with local attractions and businesses to offer unique experiences for group travelers.
Conclusion
As leisure travel demand stabilizes, hotel CEOs are welcoming a wave of business and group travel. Hotels are adapting to meet the evolving needs of these travelers by providing enhanced technology, flexible meeting spaces, personalized services, and dedicated group amenities. This resurgence in business and group travel is expected to significantly contribute to hotel occupancy and revenue in 2023.
Hotel CEOs Welcome Surge in Business and Group Travel Amid Leisure Travel Slowdown
As leisure travel demand plateaus, hotel executives are expressing cautious optimism about a rebound in business and group travel. According to Travel Weekly, several hotel CEOs have noted an uptick in bookings for corporate events, meetings, and group vacations. This shift is attributed to factors such as the easing of travel restrictions, the return of in-person conferences, and the increased comfort of business travelers with resuming face-to-face interactions. Hilton CEO Christopher Nassetta said the company has seen a “meaningful uptick” in business travel, particularly in key markets such as New York City and London. He attributed this to the “reopening of offices and the restart of major conferences.” Marriott International CEO Anthony Capuano echoed similar sentiments, stating that the company has observed a “significant return of group business” in recent months. He highlighted the success of Marriott’s Convention Center Headquarters program, which offers exclusive services and amenities to event organizers. While group and business travel are expected to drive revenue growth for hotels, executives acknowledge that leisure travel remains a critical segment. They emphasize the need to maintain a balance between the two types of travel to optimize performance. Overall, the surge in business and group travel is seen as a positive sign for the hotel industry, which has been heavily impacted by the pandemic. However, hotel CEOs remain cautious about the potential impact of economic headwinds and geopolitical uncertainties.
