• Privacy Policy
  • About Us
  • Contact Us
en English US▼
X
sq Albanianar Arabichy Armenianzh-CN Chinese (Simplified)zh-TW Chinese (Traditional)da Danishnl Dutch en English US en English UK tl Filipinofr Frenchfy Frisiande Germanel Greekiw Hebrewhi Hindiit Italianja Japanesekk Kazakhko Koreanla Latinlv Latvianlt Lithuanianml Malayalamne Nepalifa Persianpl Polishpt Portuguesero Romanianru Russiansm Samoanes Spanishsv Swedishtr Turkishuz Uzbekzu Zulu
No Result
View All Result
  • Travel News
  • Travel Tips
  • Destinations
  • Travel Ideas
  • Entertainment
  • Finance
  • Sports
  • Weather
  • Tickets
  • More
    • Shop
    • Video
    • Food & Drink
    • Style & Culture
    • Cheap Deals
  • Travel News
  • Travel Tips
  • Destinations
  • Travel Ideas
  • Entertainment
  • Finance
  • Sports
  • Weather
  • Tickets
  • More
    • Shop
    • Video
    • Food & Drink
    • Style & Culture
    • Cheap Deals
Wingman Travels
No Result
View All Result
Ticketmaster FR
Home Travel News

Hilton: Booking Future Group Business a ‘Delicate Balancing Act’

enpassant by enpassant
October 28, 2021
in Travel News
0 0
0
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter
Banner 2


Hilton Worldwide president and CEO Christopher Nassetta sounded very optimistic about his company’s recovery and future demand prospects during a third-quarter earnings call Wednesday. “The laws of economics are alive and well,” he said at three points during the call. Hilton seems to be applying supply-and-demand laws to its group business prospects by potentially holding back on finalizing agreements, particularly for the second through fourth quarters of 2022, when some analysts expect group demand to accelerate. 

“We do believe there’s going to be a lot of group potential, particularly in the second, third and fourth quarters,” Nassetta said. “And we don’t want to commit. There’s a level of lack of desire on our part to commit too much space when we know that there’ll be a lot of pricing power. So it’s sort of a bit of a delicate balancing act.”

That tactic may motivate some meeting managers and planners to lock in their agreements as soon as they have a chance, especially since Nassetta added that the company already is pricing over 2019 levels because there is so much pent-up demand. 

“There’s one segment that books well in advance, and there’s a limited amount of meeting space in the world and in the United States,” he said. “We happen to have a lot of it. I mean, there are a few of us that are very big players in that space. So the reality is, again, the laws of economics are alive and well. People want it. There’s not enough of it. So even though at the moment group revenues aren’t what they were, on a forward-looking basis there is a good amount of pricing power.”

For the third quarter of 2021, group revenue per available room was approximately 60 percent of 2019 levels, improving 21 percentage points from the second quarter, Nassetta added, though sports and social generated much of the group business that occurred in the quarter. 

Business Transient Demand, Pricing

Nassetta said nearly 70 percent of U.S. businesses were back on the road, up 28 points from the end of the second quarter. In the third quarter, business transient room nights were roughly 75 percent of prior peak levels, he said, adding that 80 percent of Hilton’s typical corporate mix comes from small and midsize enterprises, and the company is increasing its focus on that segment. 

“This demand is higher-rated, more resilient, which has helped us to recover more quickly in business transient and should drive rate compression in the future as larger corporate travel picks up,” Nassetta said.

Hilton expects business transient business in the fourth quarter to mirror that of the third quarter and anticipates SMEs to lead it. That segment is off by about 5 percent to 10 percent of 2019 levels, Nassetta said. Large corporate bookings are still off about 40 percent. But he thinks the latter will start to rebound and drive an increase in overall business transient levels.

As for pricing, he projected that the biggest corporate customers could end up with about 10 percent to 20 percent off the best available rate, while SMEs might end up at 5 percent or 7 percent off. 

“In business transient combined, [rates are] already at 90 percent of 2019 levels, even though we still have a ways to go to build back demand,” Nassetta said. “I feel pretty good about where that’s going because we’re going to keep pushing on small and medium. “That’s almost back. My guess is that will exceed prior levels. And then the corporates are going to come in. And that’s going to allow us to put more on the top of the funnel to price—have more demand, allow us to price more aggressively.”

Q3 Earnings Metrics

Hilton reported third-quarter net income of $240 million, up from a loss of $81 million one year ago. Systemwide RevPAR at $90.39 for the quarter decreased 18.8 percent compared with 2019. Occupancy was 64.3 percent, which was down from a third-quarter 2019 level of approximately 79 percent. Average daily rate was $140.57, off by about 3 percent. 

The company added 14,700 new rooms for a net addition of 11,200 for the quarter, or 6.6 percent growth year over year. Hilton approved 23,600 new rooms for development during the quarter, bringing its pipeline to 404,000. Of that number, 249,000 are for outside the United States, and 204,000 are under construction. Hilton anticipates full-year 2021 room growth to range between 5 percent to 5.5 percent.

During 2020, Hilton had 1,270 hotels closed at some point through Sept. 30. This year, through Sept. 30, about 335 had suspended operations for part of the year. All but 88, or about 1 percent of the company’s portfolio, are expected to be open by the end of 2021, according to Hilton.

RELATED: Hilton Q2 earnings



Source link

Previous Post

The Best Hotels in UNESCO World Heritage Sites, From Versailles to Machu Picchu

Next Post

Aldi Holiday Advent Calendars 2021: Food & Drink Gifts to Buy

Next Post
Aldi Holiday Advent Calendars 2021: Food & Drink Gifts to Buy

Aldi Holiday Advent Calendars 2021: Food & Drink Gifts to Buy

Please login to join discussion
  • Trending
  • Comments
  • Latest
Tornado tore through 200 miles of Kentucky. Here’s its path

Tornado tore through 200 miles of Kentucky. Here’s its path

December 11, 2021
Can I travel to the USA? The rules for travelling from the UK

Can I travel to the USA? The rules for travelling from the UK

June 2, 2021
SpaceX Launch Tracker: Follow Live Updates

SpaceX Launch Tracker: Follow Live Updates

September 16, 2021
Woman with life-threatening injuries after single vehicle crash on Tampa Road in Oldsmar

Woman with life-threatening injuries after single vehicle crash on Tampa Road in Oldsmar

November 7, 2021
Questions to ask before your first family RV trip | Lifestyle

Questions to ask before your first family RV trip | Lifestyle

0
Candace Cameron Bure: Does she still talk to Lori Loughlin?

Candace Cameron Bure: Does she still talk to Lori Loughlin?

0
Cherryville Sports Hall of Fame announces 2021 induction class

Cherryville Sports Hall of Fame announces 2021 induction class

0
Jenn Drummond, Park City mom, on top of the world

Jenn Drummond, Park City mom, on top of the world

0
Why sailing the Mediterranean on the world’s largest cruise ship might be the holiday for you

Why sailing the Mediterranean on the world’s largest cruise ship might be the holiday for you

June 26, 2022
Hamptons Travel Guide – Best Hotels, Restaurants, and Experiences in the Hamptons

Hamptons Travel Guide – Best Hotels, Restaurants, and Experiences in the Hamptons

June 25, 2022
Gas-Tax Holiday Is a Gimmick. Here Are Some Better Ideas.

Gas-Tax Holiday Is a Gimmick. Here Are Some Better Ideas.

June 25, 2022
ADOT: Weekend freeway travel advisory for the Phoenix area | News

ADOT: Weekend freeway travel advisory for the Phoenix area | News

June 25, 2022

Links

Wingman Travels
Wingman Travel Agency
Car Rentals
Tours
Virtual Experiences
Tickets

Categories

  • Destinations
  • Entertainment
  • Finance
  • Food & Drink
  • Sports
  • Style & Culture
  • Travel Ideas
  • Travel News
  • Travel Tips
  • Video
  • Weather

Newsletter

To stay on top of the ever-changing world, subscribe now to our newsletters.

Loading

*We hate spam as you do.

 

  • Privacy Policy
  • About Us
  • Contact Us

© 2022 Wingman Travels LLC All Rights Reserved.

No Result
View All Result
  • Travel News
  • Travel Tips
  • Destinations
  • Travel Ideas
  • Entertainment
  • Finance
  • Sports
  • Weather
  • Tickets
  • More
    • Shop
    • Video
    • Food & Drink
    • Style & Culture
    • Cheap Deals

© 2022 Wingman Travels LLC All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In