The research arm of investment bank Truist reported on a conference call it held with corporate travel data company Tripbam. Takeaways included that any indications of a recession have not yet shown up in business travel bookings and pricing data.
Tripbam believes 15 percent of business travel may never fully recover but that is better than the 20% they had forecast back in January.
Global booking volumes as of mid-September have been stagnant the past several months and are running down 15 percent versus comparable 2019 levels and closer to down 25 percent for the US. Room rates are tracking up 5 percent from 2019 levels.
Looking forward to 2023, Tripbam thinks corporate rate negotiations could wind up with a 5 percent to 8 percent year-over-year increase.
Finally they think the technology sector remains a substantial drag on the overall pace of recovery, especially in the US and even more specifically for the San Francisco hotel market.
This summary appeared today in Daily Lodging Report, which offers essential industry news for hospitality and lodging executives. Subscribe here.