Leisure giants warn that hotel demand is leaving the country
Not long ago, Americans were all about the experience economy — but their heavy travel spending is starting to fall off. Yesterday, Airbnb told investors to brace for lower revenue growth as North American bookings decrease, echoing similar warnings from Intercontinental Hotels and Marriott, which also raised concerns this week about the state of domestic hospitality.
- Although Airbnb’s net income doubled year-over-year (YoY), the company anticipates only an 8-10% YoY increase in sales for the next quarter, lower than analysts’ expectations.
- Meanwhile, Marriott noted a “cooling” in domestic hotel demand, with revenues per room climbing by just 1.5% — and competitor IHG actually saw sales fall 0.3%.
There’s always overseas: On the bright side, all three firms reported stronger demand overseas, compensating for the slowdown in American leisure travel. Marriott’s CFO Leeny Oberg expressed optimism about higher global hotel revenues, a sentiment echoed by IHG’s own expansion. Additionally, Airbnb credited its growth to new listings in Asia Pacific and Latin America.
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