Marriott says it saw ‘immediate surge’ in bookings after EU announcement
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
It’s no secret that the COVID-19 pandemic walloped the travel industry, but one hotel chain seems optimistic about its future post-pandemic.
The Marriott umbrella encompasses 30 brands and thousands of rooms, from swanky Ritz-Carltons to the wallet-friendly Four Points by Sheraton. The company reported earnings for the quarter today, and said RevPAR — that is, the revenue per available room — declined more than 46%, compared to the first quarter of 2020. But Marriott also said 95% of its 7,600 properties worldwide are open again, and that’s good news for future earnings.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter!
“In our largest region, the U.S. & Canada, demand increased rapidly as vaccine rollouts accelerated,” Marriott’s chief executive officer Tony Capuano said in a statement.
Marriott beat Wall Street analysts’ expectation on earnings, but revenues of $2.3 billion fell slightly short of expectations for $2.5 billion in the quarter. Revenue was down 51% year-over-year.
In a statement, CEO Tony Capuano said, “We were pleased to see demand improve meaningfully during the first quarter.”
Indeed, travel appears to be on the upswing in the United States and Canada, and Marriott also said it saw an “immediate surge” in call volume in the wake of the European Union’s proposal to allow vaccinated travelers to enter the EU.
While many details still have yet to be finalized, the EU is expected to welcome vaccinated tourists — which would include Americans — this summer.
European Commission president Ursula von der Leyen has been among the EU leaders pushing for a safe reopening — in a May 3 tweet, she shared a proposal “to welcome again vaccinated visitors & those from countries with a good health situation.”
Any U.S. passport holders entering the EU would likely need to present a COVID-19 vaccination certificate. In a press release, the European Commission stated that it would allow entry to “people who have received the last recommended dose of an EU-authorised vaccine.” Member countries would be likely to accept vaccinations from Johnson & Johnson, Moderna and Pfizer, since all three have been approved for use in the EU.
Marriott appears to be optimistic that travel demand will rebound as more people are vaccinated worldwide.
“We have seen signs that there is a significant amount of pent-up demand, regardless of trip purpose, and we look forward to welcoming travelers in increasing numbers to our more than 7,600 properties around the world,” Capuano said.
The EU is also warning, however, that countries could implement restrictions quickly if new outbreaks sprang up in order to limit the spread of new COVID-19 variants. That could impact vaccinated travelers as well.
Featured photo by Justin Sullivan/Getty Images
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees