The U.S. hotel industry saw robust growth in group and business travel during the second quarter of 2024, according to a recent report by Knowland and Amadeus. Their Hospitality Group and Business Performance Index recorded a 105.5% overall health rating compared to 2023, marking the first time the index surpassed 100%. This growth was driven by steady event volumes, which provided stability to hotels across the nation.
Out of the top 25 U.S. markets, 22 exceeded 100% in overall group and business performance year-over-year, with Las Vegas leading the pack at 117.9% growth. Other strong performers included Seattle (117.6%), Nashville (114.2%), Detroit (110.2%), and Houston (108.9%). The index noted that Las Vegas, Detroit, and Seattle were particularly successful in group travel growth.
The consistency in event volumes, especially in key sectors like technology, national associations, and education, played a significant role in this growth. While the nature of some events has shifted—such as a reduction in one-day meetings and a move towards multiday events—the overall impact on hotel revenues has been positive. Meetings and events have been a critical factor in maintaining hotel stability, a sentiment echoed by major hotel chains.
Marriott International and Hilton, for instance, attributed their Q2 revenue gains to increased group travel, with Marriott CEO Anthony Capuano highlighting group travel as the company's strongest customer segment during the quarter. In Las Vegas, resort operators like Wynn Las Vegas are also experiencing record-breaking performance in group and convention business, with 2024 on track to be the hotel’s best year ever in this segment.
This strong performance in group and business travel underscores the ongoing recovery and resilience of the hotel industry, with continued optimism for growth in the coming quarters.
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