‘Healthy’ group, business travel continues to benefit hotels: report

Dive Brief:

• Group and business travel performance across the U.S. remained “healthy” in the second quarter of 2024, according to Knowland and Amadeus’ Hospitality Group and Business Performance Index. The second quarter achieved 105.5% overall health as compared to 2023, marking the first time the overall index exceeded 100%, according to the companies. 
• Some 22 of the top 25 U.S. markets achieved 100% or more in overall group and business performance in Q2, compared to the same time in 2023. Las Vegas led all other markets, reaching 117.9% performance growth year over year. 
• Events volume remained steady in the quarter, with meetings continuing to benefit hotels, Knowland and Amadeus found. Several major hotel companies attributed their Q2 revenue gains to heightened group travel. 

Dive Insight:

Seattle (117.6%), Nashville (114.2%), Detroit (110.2%) and Houston, Texas (108.9%), followed Las Vegas as leaders of group and business performance in the second quarter, according to the index. 

The top markets for group growth, specifically, were Las Vegas, Detroit and Seattle. In Q2, Knowland and Amadeus’ Group Index achieved seven consecutive quarters of year-over-year growth, the companies announced. 

Knowland previously reported that Las Vegas took the top spot for events volume growth in May, with the technology industry being a key driver of meetings and events in the market that month. 

National associations and the education industry, meanwhile, led other sectors for the most events nationwide in the second quarter, according to the index. The technology sector ranked fourth for events volume across the country in the quarter. 

Events volume remained steady in the quarter, though the events themselves looked different in some ways. According to the index, there has been a reduction of one-day meetings, with some events moving to multiday formats that are held less frequently.  

Despite some changes, meetings “continue to provide stability for hotels,” according to Knowland and Amadeus.

Several major hotel players, including Marriott International and Hilton, attributed their Q2 revenue growth to increased group travel. Marriott CEO Anthony Capuano said that group remained the company’s “strongest customer segment” in the quarter. 

And in Las Vegas, resort operators also reported group performance gains. Wynn Las Vegas President Brian Gullbrants said that 2024 is on track to be the hotel’s “best year ever” for group and convention performance.