Hilton: U.S. leisure travel ‘definitely softening’
Hilton raised its profit forecast for 2024, but noted that the post-pandemic travel surge was leveling off, especially among American tourists
Hilton Worldwide on Wednesday beat second-quarter expectations and raised its earnings forecast for 2024, as strong international travel demand offset a decline in U.S. travel.
Key takeaways
- Hilton's international revenue per available room (RevPAR) rose 3.5% in the quarter, with notable growth of 10.7% in the Middle East and Africa and 6.7% in Europe;
- In contrast, U.S. RevPAR grew just 2.9% as economic uncertainty caused Americans to cut back on travel plans, resulting in a 1.5% decline in Hilton's share price;
- Hilton CEO Christopher Nassetta said on an earnings call that consumers have depleted their pandemic savings and are now borrowing more, leaving them with less disposable income and reduced capacity to spend, including on travel.
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