Insights on Budget Travel from Marriott’s CEO

Anthony Capuano, the CEO of Marriott International, discussed budget travelers during his talk on “Claman Countdown” on Monday.

He mentioned to host Liz Kraman that consumers who choose Marriott are still keen to travel, but they’re looking for lower prices.

Capuano emphasized that Marriott has been actively focusing on the midscale segment for the last two years.

This effort began with their acquisition of City Express, a brand they bought from CV Hoteles City Express in 2022 for around $100 million.

“Additionally, we developed our own expanded midscale offering, called Studioores,” he shared with Kraman.

The first Studioores location opened recently in Fort Myers, Florida. This hotel provides studio-style accommodations featuring one or two beds, a lounge area, and amenities including a microwave and a full-sized refrigerator.

When questioned about how it stands apart from other Marriott brands, Capuano replied, “The price is a significant factor.”

He elaborated, “It starts with a much more modest service. These guests might be temporary workers, perhaps involved in construction projects or consulting roles. They could even be digital nomads.”

Capuano believes that this price range is appealing to consumers who are more budget-conscious.

Moreover, he highlighted the variety within Marriott’s offerings, noting that they can accommodate different travel needs based on income.

Marriott’s portfolio includes various brands, such as the Ritz-Carlton, St. Regis, Sheraton, Courtyard, The Westin, and Moxie.

In the first quarter alone, the company reported revenues of $6.26 billion and a net profit of $665 million.