Hyatt, Hilton and Marriott have been struggling to keep their doors open during the pandemic, but now that the revenge travel boom is in full swing, they are showing their true colors.
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Hyatt, Hilton and Marriott warn high prices will stay forever
Chief executives of the three major chains have warned that the high prices travelers are seeing this summer will remain, at least for a while. While the post-pandemic vengeance journey was something of a foreshadowing (actually, right here on this blog), the overshoot of 2019’s hitherto considered “peak travel” remains impressive. At the risk of being complacent, I made this statement just two days to two years ago: “So my prediction is that the Peak Journey may not happen again until at least early 2022.” In fairness, I assumed that the stumbling block would be decommissioning and replacement of aircraft – I was wrong, the problem is not in decommissioning aircraft, but in the pilots who fly them.
Add to that the highest inflation in 40 years (half the US population has never seen such levels in their entire lives), and the current demand is simply shocking.
“Marriott CEO Tony Capuano said that over Memorial Day weekend, the company’s revenue per vacant room, which measures the performance of a hotel, was up about 25% in 2022 compared to 2019.” – CNNBC.
And it’s not just cheaper hotels with more services and lower prices that are pushing up demand. In fact, the luxury segments showed even higher growth.
“In Marriott’s luxury portfolio, which includes hotels such as JW Marriott, Ritz-Carlton and St. Regis, prices at these hotels have increased by almost 30% in the first quarter of 2022 compared to 2019.” –CNBC
Hyatt Hotels CEO Mark Hoplamazian sees excellent performance across the board and no slowdowns are foreseen. IHG CEO Keith Barr echoed these sentiments.
“Almost everywhere, all business segments and leisure activities are working to their fullest,” Hoplamazyan said.
“Keith Barr, CEO of IHG Hotels & Resorts, which owns brands such as InterContinental and Holiday Inn, said he expects demand to continue to rise through the end of the year as travel has become more normal since the pandemic.” –CNBC
Barr added that despite this price increase, they are not keeping up with inflation, but 25% room rate and high occupancy with reduced service suggests…