Marriott Cuts 2025 Revenue Outlook Amid Tariff Impact
Marriott International has trimmed its 2025 room revenue growth forecast to between 1.5 percent and 3.5 percent, down from its previous 2 percent to 4 percent projection, as economic uncertainty tied to President Donald Trump’s import tariffs weighs on travel demand. During an April earnings call, Marriott executives attributed the revision to a softer booking environment, shorter reservation windows and a 10 percent decline in nights booked by U.S. government travelers following federal staff layoffs.
The hotel giant’s revised outlook follows a wave of downward adjustments across the broader travel sector. Major U.S. airlines including United, American, Delta and Southwest have all reported setbacks linked to the new tariff regime and cautious consumer spending. United Airlines revealed government-related bookings plunged roughly 50 percent in the first quarter, while American Airlines cut its profit forecast by seven percent, and Delta and Southwest trimmed theirs by 11 percent and three percent respectively.
Marriott CFO Leeny Oberg explained that the company continues to see strong demand in certain segments but noted that overall visibility remains low. “Shorter booking windows reflect customers’ hesitation to commit far in advance amid uncertainty,” she said, adding that group and corporate segments have been complicated by delayed decision-making and evolving budget constraints.
Industry analysts say the slowdown is partly a reaction to Trump’s tariff hikes on imported goods, which have prompted businesses to tighten travel budgets. Leisure travelers have also shown more sensitivity to price, leading to promotional discounts and occupancy fluctuations. With active-duty federal employees booking fewer room nights, hotels that had counted on guaranteed government rates face an unexpected revenue gap.
Marriott’s revenue forecast adjustment underscores the interconnected impact of trade policy and labor decisions on hospitality. The company noted that while nights booked by federal agencies declined, international inbound travel has remained relatively stable thanks to a strong dollar and easing post-pandemic restrictions. Still, the mix of domestic and international demand has shifted, forcing property owners and franchisees to recalibrate their pricing strategies.
Looking ahead, Marriott plans to focus on cost controls, targeted marketing incentives and loyalty program enhancements to stimulate demand. The company’s Bonvoy loyalty members will see expanded points-earning opportunities on select stays and dining charges through mid-year promotions. Marriott also anticipates that its ongoing expansion in Asia and the Middle East will partially offset slower growth in North America.
Travel industry executives are watching closely for the Federal Aviation Administration’s response to air traffic control staffing shortages and emerging infrastructure challenges, which have disrupted flight schedules and added stress to the broader tourism ecosystem. Delayed flights and airport congestion have further dampened traveler confidence, particularly for business travelers juggling tight itineraries.
Despite the cautious tone, Marriott remains committed to its long-term growth trajectory. The company pointed to its ambitious development pipeline, which includes more than 200 new properties slated to open by 2026, as evidence that it expects a rebound once policy and labor headwinds ease. In the meantime, the revised 2025 outlook serves as a reminder that global trade dynamics and domestic policy decisions exert powerful influence over travel trends and hospitality economics.
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