Marriott International CEO Tony Capuano advised CNBC on Monday the excellence between enterprise and leisure journey is fading, a welcome improvement for the resort operator because it recovers from the coronavirus pandemic.
Individuals occurring holidays and different private journeys has led the hospitality trade’s rebound from the Covid-induced injury that hit greater than a yr in the past. The return of trips for corporate purposes is essential for an entire comeback, although, and there have been questions on how lengthy it’ll take for that to return to pre-pandemic ranges — if ever.
“We do suppose you may see a gentle return of enterprise,” Capuano mentioned in an interview on “Squawk on the Street,” noting that, in mainland China, business-travel demand in March was 5% above the place it was in March 2019. China’s financial restoration timeline is mostly regarded as a number of months forward of the U.S.
Nonetheless, Capuano mentioned Marriott may benefit from a broader shift in the best way company journey is seen after the pandemic, when many white-collar staff are anticipated to have better flexibility round going into the workplace following the required embrace of distant work on account of Covid.
As extra individuals return to the workplace, enterprise journey will choose up, Capuano mentioned. “The factor that might be fascinating to observe, I believe it may be much less clear what the journey goal is,” he mentioned.
“More and more we’re seeing of us that say, ‘I can mix journey functions. I can mix leisure with enterprise journey.’ And we predict that is actually excellent news for our accommodations throughout the nation,” mentioned Capuano, who has led Marriott since February. He took over for the late Arne Sorenson.
Capuano’s feedback Monday got here shortly after the Maryland-based firm reported first-quarter monetary outcomes. Marriott’s adjusted earnings per share of 10 cents topped consensus estimates of 4 cents, in response to FactSet, whereas quarterly income of $2.32 billion was beneath projections of $2.38 billion.
Marriott shares fell by greater than 3% Monday to commerce round $142 apiece. The inventory is up about 7% yr thus far.