FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

The Future of Corporate Travel, According to Major Hotel CEOs

by Allie Moore

Oct 28, 2017
Feature

Despite the country’s current low unemployment and high hotel occupancy rates, major hotel chains report surprisingly low revenues per available room.

Both Marriott International and Hilton reported low RevPARs from the second quarter of 2017, especially among corporate and group travel. One reason for these low numbers is the growth of alternative accommodation availability through channels like Airbnb, more affordable options for companies looking to cut back on travel expenses. When events take place in major cities and hotels start to fill up, companies look to these home-sharing sites for cheaper rates, causing hotels to bring prices down, affecting overall revenue.

Although these numbers are shockingly low considering the current state of the economy, hotel executives are not too worried; they hope future changes to corporate tax structure will allow more resources to invest in travel and lead to more flexibility with accommodations.

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