Hyatt Sees a Business Travel Rebound

Good morning from Skift. It’s Friday, August 4. Here’s what you need to know about the business of travel today.

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Episode Notes

It’s still uncertain when business travel will make a full recovery. But Hyatt is optimistic that the sector is making substantial progress in its rebound from the pandemic, reports Senior Hospitality Editor Sean O’Neill.

Hyatt CEO Mark Hoplamazian said on Thursday the company is seeing sustained corporate demand for group travel, which he added is showing no signs of slowing down. Hyatt booked roughly $500 million in future group business in the second quarter, and 42% of those group business were corporate. O’Neill writes that Hyatt’s more than 1,200 hotels and resorts are popular places to hold events, noting that corporate travel managers have reason to be encouraged about Hyatt’s upbeat report. 

Hyatt generated a net income of $68 million during the second quarter. The company’s revenue per available room — an important industry metric — rose 15% from last year. 

Next, the Lufthansa Group has lifted its profit outlook for the rest of the year due to robust travel demand in Europe, reports Edward Russell, editor of Airline Weekly, a Skift travel brand.

CEO Carsten Spohr said on Thursday that the company has seen travel demand remain extraordinarily strong. Russell writes the Lufthansa Group has been boosted by premium leisure travelers who have become increasingly important to major airlines. He adds that people are still willing to pony up for travel within Europe and long-haul international routes.

In addition, although corporate travel has plateaued at passenger volumes roughly 60% of 2019 levels, Spohr expressed optimism about the sector’s outlook for the fall. 

Finally, Airbnb believes its formula to continued growth includes providing better value than hotels and expanding throughout Europe, Latin America and Asia, reports Executive Editor Dennis Schaal. 

CEO Brian Chesky told analysts on Thursday that he heard last year that Airbnb was becoming less affordable compared to hotels. However, the short-term rental giant saw its rates rise 1% globally in the second quarter while the hotel industry saw an up to 10% jump. The company unveiled new pricing tools for hosts several months ago, which Chesky said will help make Airbnb stays more affordable for guests. 

Schaal notes that Airbnb saw bookings significantly rise in both Brazil and Germany during the second quarter. Chesky said Airbnb would apply the lessons it’s learned from those two fast growing markets to its global expansion strategy, especially in Asia. However, he said Airbnb isn’t planning to re-enter Mainland China, which the company withdrew from in 2022.