Marriott International CEO Tony Capuano instructed CNBC on Monday the excellence between business and leisure travel is fading, a welcome growth for the resort operator because it recovers from the coronavirus pandemic.
People occurring holidays and different private journeys has led the hospitality trade’s rebound from the Covid-induced injury that hit greater than a 12 months in the past. The return of trips for corporate purposes is essential for an entire comeback, although, and there have been questions on how lengthy it can take for that to return to pre-pandemic ranges — if ever.
“We do think you’ll see a steady return of business,” Capuano stated in an interview on “Squawk on the Street,” noting that, in mainland China, business-travel demand in March was 5% above the place it was in March 2019. China’s financial restoration timeline is typically regarded as a number of months forward of the U.S.
However, Capuano stated Marriott may benefit from a broader shift in the way in which company travel is seen after the pandemic, when many white-collar workers are anticipated to have larger flexibility round going into the workplace following the mandatory embrace of distant work as a consequence of Covid.
As extra individuals return to the workplace, business travel will decide up, Capuano stated. “The thing that will be interesting to watch, I think it’s going to be less clear what the trip purpose is,” he stated.
“Increasingly we’re seeing folks that say, ‘I can blend trip purposes. I can combine leisure with business travel.’ And we think that’s really good news for our hotels across the country,” stated Capuano, who has led Marriott since February. He took over for the late Arne Sorenson.
Capuano’s feedback Monday got here shortly after the Maryland-based firm reported first-quarter monetary outcomes. Marriott’s adjusted earnings per share of 10 cents topped consensus estimates of four cents, in accordance with FactSet, whereas quarterly income of $2.32 billion was beneath projections of $2.38 billion.
Marriott shares fell by greater than 3% Monday to commerce round $142 apiece. The inventory is up about 7% 12 months thus far.
