by Doyinsola Oladipo
(Reuters) – U.S. travel companies including Airbnb and Marriott International are forecasting a slowdown in leisure travel as American consumers wait longer to book vacations amid uncertainty over the economic outlook.
After several years of strong demand, travel industry companies have warned that U.S. bookings will remain flat in the third quarter, weighed down by lower travel spending by Americans.
“They have less availability, less disposable income and (less) ability to do anything, including travel,” Hilton Worldwide Chairman and CEO Cristopher Nassetta told analysts on an earnings call Wednesday.
The group said growth in all segments of travel was expected, while warning of “very, very weak” growth in leisure travel.
Hilton Worldwide has raised its 2024 profit forecast as international revenue offsets losses from slowing U.S. demand.
Other companies are feeling the effects, from Delta Air Lines and United Airlines to Walt Disney, which reported a drop in theme park profits on Wednesday.
Marriott also lowered its forecast for revenue per available room growth in 2024, partly due to weaker demand in North America.
Rental platform Airbnb and online travel agency Booking both said they were seeing slowing growth in the United States.
“We’re not seeing as many people booking their entire vacation at the beginning of the calendar year,” said Julie Brinkman, CEO of Beyond, a short-term rental management platform. She’s also seen a trend among travelers, who are “now waiting until they’re closer to the travel date and can confirm they have the funds to go.”
Airbnb shares closed down 13.4% on Wednesday at $113 (103.37 euros), their worst day since May 26, 2023, while Booking Holdings fell 3.3%.
“Looking ahead to the third quarter, we expect room night growth to be impacted by a less expansive booking window than in the second quarter,” said Glenn Fogel, CEO of Booking Holdings.
Investors will get another look at leisure travel trends Thursday when online travel agency Expedia reports second-quarter results.
(Reporting by Doyinsola Oladipo in New York, with contributions from Aiswarya Jain in Bangalore; by Mara Vîlcu; editing by Augustin Turpin)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
