Business Travel Shows No Sign of a Recession
Skift Take
- The DJIA fell another 0.6% on Tuesday, Nasdaq was down 0.1%, the S&P 500 fell 0.5% and the 10-year treasury yield rose to 3.963%, its peak since 2010.
- Truist reported on a conference call it held with corporate travel data company Tripbam. Takeaways included that any indications of a recession have not yet shown up in business travel bookings and pricing data.
- Evercore ISI Group upped its rating on Hyatt to Outperform from In Line. Their price target is $100.
The DJIA fell another 0.6% on Tuesday, Nasdaq was down 0.1%, the S&P 500 fell 0.5% and the 10-year treasury yield rose to 3.963%, its peak since 2010.
Truist reported on a conference call it held with corporate travel data company Tripbam. Takeaways included that any indications of a recession have not yet shown up in business travel bookings and pricing data. Tripbam believes 15% of business travel may never fully recover but that is better than the 20% they had forecast back in January. Global booking volumes as of mid-September have been stagnant the past several months and are running down 15% versus comparable 2019 levels and closer to down 25% for the US. Room rates are tracking up 5% from 2019 levels. Looking forward to 2023, Tripbam thinks corporate rate negotiations could wind up with a 5%-8% year-over-year increase. Finally they think the technology sector remains a substantial drag on the overall pace o
