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Marriott International tops Q1 earnings estimates amid leisure travel demand

Yahoo Finance Live discusses a rise in shares of Marriott International as the company's Q1 earnings report exceeds investor exceptions amid a rising demand of leisure travel.

Video transcript

- Kicking it off with Marriott, people are eager to travel, and this hotel chain is obviously getting a boost from that. Look at shares up just about 4.5%, after Marriott beat on both the top and bottom lines, also raised its guidance as demand for leisure travel is making up for the sluggish recovery that we're seeing in business travel. Revenue per available room, that jumped 34% from a year ago. Now, despite sticky inflation, also the risk of recession, CEO Tony Capuano saying that, there are not any really signs so far of slowdown, and that demand does remain strong.

And Akiko, Marriott is just the latest travel name here to really reiterate the fact that people are eager to travel. They're willing to pay those higher prices, not only on hotels. We've heard it from a number of the airlines, too. We know airfares are up pretty dramatically on a year over year basis. Despite that though, that's where people are allocating their spending in this inflationary environment.

- Yeah, and Seana, I can attest to that, as somebody who just traveled internationally a few weeks ago. I mean, there is real sticker shock, when you look at the price of the ticket, the price of hotels, the price of even Airbnb's. But it points to just this eagerness, the pent-up demand we've been talking about, although probably not as much pent-up anymore. It is just this willingness on the part of the traveler and consumer to really just shell out money for that trip they've been saving up for, hoping to go on for several years now.

- Yeah, and lots of attention on China's COVID-19 recovery here. So more specifically, in greater China, revenue per an available room is up 78.3%. Meanwhile, in Asia-Pacific excluding China, up 112.8%. So, not only this company keeping a close eye on the recovery in China, but certainly other consumer-facing companies looking to do the same, as you noted before, that pent-up demand continues.