Marriott CEO Anthony Capuano: The K-shaped economy is impacting the travel vertical

Core Insights - Marriott's shares increased after the company reported a strong revenue per available room (RevPAR) performance, despite missing earnings expectations and providing solid guidance for 2026 [1][3]. Group 1: Revenue Performance - The global luxury RevPAR increased over 6% year-over-year, indicating strong demand in the luxury segment [3]. - In the U.S. and Canada, RevPAR would have increased by about 1% if not for the impact of the government shutdown, which affected operations for approximately 43 days [5]. - The company has about 10% of its global inventory and pipeline in the luxury tier, benefiting from the K-shaped economy [6]. Group 2: Travel Trends - There is a noticeable decline in international inbound travel to the U.S., which may impact domestic tourism and events like the World Cup [7]. - However, cross-border travel globally is ahead of 2019 levels, suggesting a recovery in international travel [8]. Group 3: Business Travel - Leisure travel was the strongest segment for the quarter and the year, followed by group travel, while business transient travel remained flat [9]. - The company anticipates low to mid-single-digit increases in rates for special corporate business negotiations, indicating a positive outlook for business travel [10].