Forward Bookings Tell Story of Corporate, Group Recovery

While U.S. hotels generally have benefited from leisure demand over the summer, hoteliers are watching future bookings for growth in corporate and group demand.

During the recent round of earnings calls, executives at hotel brand companies and real estate investment trusts shared their expectations for the recovery of corporate and group demand over the next several quarters.Tony Capuano, CEO, Marriott International

“The U.S. is also seeing increasing signs of recovery in both special corporate and group demand. While special corporate booking levels in the first three-and-a-half weeks of July are still down around 45% compared to the same period in 2019, we are optimistic that we have turned a corner. U.S. special corporate bookings rose 23% in June over May, and then rose another 27% in the first three-and-a-half weeks of July, as compared to the first three-and-a-half weeks of June, with improvement widespread across industries and lengthening booking windows. Many of our corporate customers are telling us they are beginning to get back on the road this summer, and we expect to see a step up in business travel post-Labor Day as children go back to in-person learning and workers increasingly return to the office.

“Group bookings in the U.S. have also gained momentum. U.S. group bookings made for all future dates were down 29% in June compared to those made in June of 2019, a large improvement from down 56% in March 2021 versus March of 2019. And for the first time since the pandemic started, group bookings made in the month of June for any time in 2021 exceeded in-the-year bookings made in the same month of 2019.