Business transient travel revenue from Marriott International’s largest corporate accounts increased more in the first quarter of this year than in any other quarter-over-quarter period in two years, according to executives on an earnings call.
According to Anthony Capuano, CEO, first quarter business transient revenue per available room (RevPAR) increased 1% year over year, and the segment accounted for 34% of room nights. That was dampened, according to CFO Leeny Oberg, by Easter falling on March 31. However, she said the company anticipates “continued improvement in business transient revenues” throughout 2024.
Oberg said the finance sector is now up 8% against the same period in 2019, “and there is really strong continued momentum in manufacturing and communications.” Revenue from the accounting, consulting and technology sectors remains “down meaningfully” from 2019 levels, she said, but “they also continue to see meaningful momentum into Q1.”
Group demand remained strong, according to Capuano, with full-year group revenue projected to see a 9% increase.
Total first-quarter revenue for the company increased 6% year over year to nearly $6 billion, and net income decreased 25% to $564 million. Marriott projects a second quarter global RevPAR increase of 4%-5% year over year and a full-year increase of 3%-5%.
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