Marriott projects 'sturdy' business travel for 2025
After a 3% global YoY increase in Q4 business transient RevPAR, Marriott expects 2025 growth in the "low single digits"
Marriott International expects continued growth in business transient travel in 2025, following a strong 2024 performance. During its earnings call, executives noted a 3% year-over-year increase in Q4 revenue per available room (RevPAR) for the segment. CFO Leeny Oberg described business transient travel as "sturdy" and forecasted growth in the "low single digits" for 2025, outpacing leisure travel. The rebound is driven more by rising average daily rates (ADR) than occupancy gains, with overall business travel volume returning to pre-pandemic levels, though large corporate clients remain slightly below 2019 figures.
Key takeaways
- Business travel rebound: Business transient volume has reached 2019 levels, though large corporate clients' travel still lags behind. Small and midsize companies have recovered faster;
- Growth forecast: Marriott expects 2025 business transient RevPAR to grow in the "low single digits," with ADR driving gains more than occupancy;
- Shifting travel patterns: Business travel on traditional Monday-Wednesday days remains below pre-pandemic levels but is offset by increased travel on other days.
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