Business travel has been on the rise this year, returning to near pre-pandemic levels. Airlines saw the rebound in their 2024 first quarter results while hotel bookings experienced an increase in average daily rate (ADR) of 5% between 2022 and 2023.  

U.S. hotel performance continues to move towards normalization. And according to an article by Lodging Magazine, corporate group business, or corporate business that has booked inside a designated room block, is outgrowing other lodging segments. 

The Houston market showed steady growth in group room nights booked in Q2 of 2024, with positive gains compared to the same time frame in 2023. Looking forward at group travel pace for the remainder of 2024, Houston is showing significant increases in Q4, with the Houston market overall tracking at a 25% year-over-year increase and the Downtown CBD submarket seeing a 52% gain.

The market should also expect growth in transient or leisure travel in 2024. Currently, this segment of travel is tracking positive gains in all remaining quarters. Much like group travel, Q4 is showing substantial growth, with the Houston market currently tracking 25% over last year and the CBD trending toward a 30% gain.

By Norma Salcedo and Megan Henson