Marriott CEO Sees a ‘Fundamentally Permanent Shift’ as Americans, Including Lower-Income Families, Persistently Prioritize Vacations
According to Marriott CEO Anthony Capuano, Americans are persistently choosing to spend on experiences despite economic instability.
“We continue to see extraordinary demand for travel and experiences,” he stated. “It appears to be a deeply ingrained, lasting change that consumers are favoring expenditures on travel and experiences over the acquisition of physical goods.”
The hospitality company is forecasting profit growth for 2026, with income bolstered by an expansion of its room inventory and increased fees from co-branded credit cards. Although business in the U.S. softened somewhat because of the government shutdown, Capuano emphasized that the core business conditions are still robust.
While Capuano recognized an unquenchable appetite for luxury reservations, he informed Yahoo that “even the lower-income consumer continues to prioritize travel and experience spending, albeit in a more budget-friendly manner.”
Despite the pressures of inflation, elevated interest rates, and political unpredictability on family finances, Americans are tenaciously clinging to their vacation plans. Surveys indicate that over 75% plan to travel in 2025, and about a third report they will spend more on vacations than the previous year—even if this requires cutting back on other spending or opting for shorter trips.
Consumers aren’t a threat, but climate change is
Domestic leisure travel has recovered to approximately pre-pandemic volumes, and tourist spots note that visitors are increasingly seeking value—without being any less intent on traveling.
This steadfastness indicates a broader cultural movement favoring experiences above material possessions. For an extended period, outlays on travel, eating out, and leisure activities have grown faster than spending on many types of tangible products, and recent figures confirm this trend is persisting: People remain ready to indulge in creating “real-world” memories while hesitating to make large retail purchases.
The phenomenon often referred to as —a period when consumers paid astonishing amounts for concerts, festivals, and getaways—has moderated from its high in 2023. However, it has not vanished but rather settled into a new normal, with events and vacations continuing to attract solid interest at more reasonable prices.
Although the American consumer continues to show strength, Marriott identifies a more unpredictable factor as a possible danger to its operations.
In its latest 10K filing, the company changed its language from “could” to “have” when detailing how climate change is already harming destinations and increasing operational expenses, as noted by the travel blog.
“Natural disasters, extreme weather, and other climate impacts and events (including rising sea levels, extreme hot or cold weather, hurricanes and typhoons, flooding, water shortages, fires, and droughts) have impacted, and continue to impact, hotels in our system, including by causing physical damage that
prevents or limits the operations of the property or resulting in increases in insurance, energy or other operating costs,” Marriott stated in the report.