Hilton Gets a Surprising Boost From Business Travel
Photo Credit: Part of Hilton's strong quarter stemmed from strong occupancy at brands like Hampton (pictured). Hilton
Skift Take
Don't rule out the little players. Small and medium-sized businesses are largely back on the road, and that's helping lift Hilton's profit margins.
Leisure travel continues to be the strongest performer for Hilton, but a revival in business travel — particularly from smaller companies — sent the company’s profits soaring in recent months.
Hilton reported Wednesday a $240 million profit for the third quarter, the company’s second consecutive quarter of profitability during the pandemic. Leisure travel dominated the recovery, with bookings in line with 2019 levels and rates for that sector even exceeding pre-pandemic levels.
But business travel is kicking back into gear, giving the company a much-needed boost after several devastating quarters during the health crisis.
“Business transient will continue to move up,” Hilton CEO Christopher Nassetta said on an investor call. “You’ll continue to see great strength in small and medium enterprises, which aren’t fully back to pre-covid levels but are pretty close.”
Not all business travel is roaring back
