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Marriott lowers forecast as U.S. travel demand softens

  • Automatic
  • 7 May 2025
  • 1 minute read
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This article was written by Hospitality Today. Click here to read the original article

Federal spending cuts and consumer caution weigh on bookings, while international markets drive growth

May 7, 2025

Marriott International has trimmed its full-year room revenue forecast due to weaker domestic demand stemming from tariff uncertainties and federal spending cuts under President Trump. These factors have led to declines in government travel and broader consumer caution, especially in lower-priced hotel segments. While Marriott faces headwinds in the U.S., it continues to benefit from strong international performance, particularly in the Asia-Pacific region.

Key takeaways

  • Forecast revision: Marriott lowered its 2025 room revenue growth forecast to 1.5%–3.5%, down from 2%–4% previously.
  • Government travel decline: Bookings by the U.S. government fell 10%, linked to Trump’s federal funding cuts, layoffs, and tighter travel budgets.
  • Industry-wide Impact: United Airlines reported a 50% drop in government-related travel and noted spillover effects into domestic leisure travel.
  • Consumer uncertainty: Marriott cited a short booking window and low visibility into the second half of the year, signaling consumer caution.

Get the full story at Reuters

Please click here to access the full original article.

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