- Corporate retreats and group travel are surging, with revenue per available room for group bookings up 6.8% in early 2024, surpassing inflation.
- Financial and technology companies are leading the rebound, helping boost hotel revenues as other travel segments slow.
- Hotels are benefiting from strong demand for corporate events, booked years in advance as businesses prioritize in-person connections.
According to WSJ, corporate retreats and group travel are making a strong comeback in 2024, with hotels seeing a significant rise in group bookings.
Group Travel Boost
As companies shift from remote work to face-to-face interactions, group travel revenue per available room surged by 6.8% in the first eight months of the year, outpacing inflation and boosting hotel revenues.
Hotels are benefiting from rising demand for conferences, retreats, and in-person business meetings as more companies seek to foster team cohesion and strengthen client relationships. Finance and tech firms are driving the surge, with Fortune 500s leading the way in ramping up travel budgets thanks to strong corporate earnings.
The spread of remote work has pushed many companies to prioritize corporate retreats and industry conferences as a more efficient way to meet in person. Jeff Doane, chief commercial officer at Omni Hotels & Resorts, noted that companies are planning more group events to foster connections that were previously made in offices.
Changing Habits
The spread of remote work has pushed many companies to prioritize corporate retreats and industry conferences as a more efficient way to meet in person. Jeff Doane, chief commercial officer at Omni Hotels & Resorts, noted that companies are planning more group events to foster connections that were previously made in offices.
Group travel, which is typically booked years in advance, has seen steady demand through 2027, according to hotel executives. This is a marked shift from recent years when companies hesitated to commit to large-scale events due to the pandemic. As availability tightens, businesses are planning further ahead to secure venues for future events.
The rise in group travel also comes as a relief for hotels, which saw a slowdown in leisure travel post-pandemic. According to CoStar Group, the revenue boost from large group bookings has far exceeded that from smaller groups and individual travelers, helping offset declines in other segments.
In Summary
As corporate retreats and group travel gain momentum, hotels are seeing renewed revenue growth, especially from large corporate clients.
While overall occupancy levels have yet to return to pre-pandemic levels, the resurgence of in-person events is a bright spot for the lodging industry, with continued demand expected in the years ahead.
