Corporate Travel Demand Remains Strong: Industry CEOs
Photo Credit: Marriott International CEO Arne Sorensen. Corporate travel growth has been a boon for Marriott as it moves to slash commissions on meetings. Skift / Skift
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Corporate travel continues to grow as the global economy hums along immune to the geopolitical issues cropping up around the world. How long can it last? And will increasing hotel rates eat away at the increased spending made by corporations?
It's common knowledge that corporate travel is in the midst of a period of impressive growth.
Group business remains strong for hotels, and travel technology companies see strong bookings being made around the world. It seems like U.S. tax reform and the windfall it has given companies is allowing them to continue to increase their spending on business travel and meetings alike.
Hospitality company executives, in particular, laid out the upside of this phenomenon In their first quarter of 2018 earning calls. Strong demand will hopefully allow them to raise rates even more, making money for franchisees by capitalizing on demand from energy and financial companies.
This also translates to increased spending on food and beverage, among other areas, as hotel chains pivot to provide more services outside rooms and event spaces.
Here are some excerpts of what the most important executives in travel said about corporate business in the first quarter of 2018.
Arne Sorenson, CEO o
