Business Travelers, Domestic Vacationers: No Place Like Home
Posted on 08/10/2023
Domestic and business travel has declined in the face of hotel price hikes over the last few years and rising gas prices. Airlines including Spirit, Alaska, and Southwest have all reported disappointing domestic travel. Corporate travel is also down from its highs, and a cash-strapped consumer cannot make up the difference. Alaska says business travel is down 25% from 2019. JetBlue is reporting 20% declines.
This news comes as a US$ 415 million loan for Marriott Courtyards proved too rich for Cerberus Capital Management and real estate investor Highgate Capital Group. They missed payments for two months.
International travel has declined according to the U.S. Travel Association. Overseas arrivals are 26% lower than they were in 2019. According to the Travel Association’s latest bulletin for June 29: “Hotel demand remained below pre-pandemic levels for the third consecutive month and was down 2% in May.”
