Hilton: U.S. Leisure Travel 'Definitely Softening' – High-End Still Have 'Fat Bank Accounts'

Hilton raised its forecast for 2024 profit on Wednesday but signaled that the post-pandemic travel surge is leveling off, particularly with American tourism.

While international demand remains robust, Hilton executives flagged a "softening" and "normalization" in domestic U.S. travel during an earnings call.

"It's definitely softening," said president and CEO Christopher Nassetta, though he emphasized demand is "not cratering in any way."

The company now expects full-year revenue per available room growth of 2-3%, with the high end of that range down slightly from prior guidance. This shift suggests the pent-up leisure demand that fueled the pandemic recovery is moderating as travel patterns settle into a new equilibrium.

Hilton continued to forecast growth. It projected its full-year revenue per available room would rise between 2% and 3%, and its full-year adjusted EBITDA would be between $3.375 billion and $3.405 billion.

"The reason I use 'normalization' is not to be cute," Nassetta said. "For the full year, we will globally see growth in all segments. It will be very, very low in leisure transient, but positive; a little bit higher on business transient, and then very, very strong for meetings and events."

"Leisure transient has been normalizing because we're just returning to a more normal life," he said. "And it was at very elevated levels, particul