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.
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