Recovery of Business Travel Inconsistent Across US
Demand Returns to Dallas, Lags in Silicon Valley
While group travel demand is showing clear signs of recovery, hoteliers across the U.S. are less positive about the health of business travel. As business from corporate accounts typically slows down in the fourth quarter, many hoteliers are now looking to the first quarter of 2023 for an improved mix of sales.
While group travel demand is showing clear signs of recovery, hoteliers across the U.S. are less positive about the health of business travel. As business from corporate accounts typically slows down in the fourth quarter, many hoteliers are now looking to the first quarter of 2023 for an improved mix of sales.
The recovery of hotel room demand from business travelers — or business transient demand — is a "different animal" than that of group demand, said Mark George, senior vice president of sales and marketing at West Palm Beach, Florida-based hotel management company Island Hospitality.
"We'd love to say that it's going to come back, that there's a boom," he said. Instead, he described it as "up and down."
"You go to The Triangle area [in North Carolina] — that office space is empty. You go to Silicon Valley, there's some emptiness there. But then you go to Dallas, and they're starting to fill back up," he said.
The fourth quarter isn't a good indicator of the health of business transient, he said, but he expects by the middle of first quarter 2023, the industry will have a better idea of what recovery will look like.