Marriott targets budget travelers with new – Business News
Marriott International CEO Anthony Capuano shared some insight on budget travelers during a Monday look on “The Claman Countdown.”
He advised host Liz Claman that Marriott International’s lower-income customers “continue to prioritize travel, but they want to do it at a more thrifty price point,” citing spending information the company has by way of its credit card relationships.
That has pushed Marriott International to “push so strongly over the last two years into the mid-scale segment, which is a segment that historically we did not operate in,” in response to Capuano.
He stated it began with the company’s acquisition of City Express. The company acquired the City Express model portfolio from Hoteles City Express, S.A.B. de C.V. in 2022 for $100 million.
“We also organically developed an extended-stay mid-scale product called StudioRes,” he famous to Claman.
Marriott’s first StudioRes opened on Monday in Fort Myers, Florida. The extended-stay resort “offers studio-style rooms complete with one or two beds, a lounging area, and a kitchen with a stovetop microwave, and full-sized refrigerator,” in response to a press release.
Asked about what makes it completely different from Marriott’s different manufacturers, Capuano advised Claman it “starts with the price point.”
Marriott International CEO Anthony Capuano revealed that the resort model has been pushing strongly into the “mid-scale segment” of the industry for budget travelers. Helayne Seidman
“It starts with much more modest services,” he added. “These are folks that could be on a temporary assignment, maybe a construction project or a consulting assignment. They could be digital nomads.”
He stated “that product at that price point is really resonating with more cost-conscious consumers.”
Capuano additionally touted the “breadth” of Marriott’s portfolio, saying the company can “offer the right accommodation for every trip purpose, which often varies irrespective of income.”
Marriott’s manufacturers embody the Ritz-Carlton, St. Regis, Sheraton, Courtyard, Westin, Moxy and others.
The company generated $6.26 billion in income during the primary quarter. Its web income, in the meantime, got here in at $665 million.
