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The Biden administration that lifted the COVID-19-related travel ban on international visitors on Monday is already proving to be a headwind for hotelier Hyatt.
“This is a momentous day. Reopening the borders for vaccinated travelers is a really great step to take forward and re-engage. The day the Nov. 8 date was announced, we saw an instant surge in bookings. By the way, this week was up 50% overnight in terms of bookings. It just demonstrates what we have seen in virtually every segment of our industry, which is there is tremendous pent up demand for people to get back on the road,” Hyatt CEO Mark Hoplamazian told Yahoo. Live finance.
Today, the United States has ended a pandemic travel ban on international visitors from 33 countries. The ban has lasted 19 months and was first implemented by the Trump administration. International travelers will be required to show a vaccination test and a recent negative test for COVID-19.
Hotels like Hyatt and Airbnb are preparing to increase the number of visitors.
“Within one week of that announcement [Biden administration saying it would end the ban], we saw a 44% spike in nights booked for stays, crossing borders coming into United States on Airbnb for stays Nov. 9 and later, which is when the borders would open. So what we are seeing kind of across the board is evidence of pent-up demand,” Brian Chesky, co-founder and CEO of Airbnb, told analysts at a conference last week.
The influx of international travelers is likely to further drive Hyatt’s recovery.
Hyatt’s third-quarter net income was $ 241 million, much better than a net loss of $ 150 million a year ago. Revenue per available room (RevPar) has improved year after year in Hyatt hotels in America, Europe and Asia. Average daily rates also increased in all geographic regions.
Shares of Hyatt have risen 22% to date, slightly behind with a 25% return on the S&P 500.
Brian Sozzi is general editor and still Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi yen LinkedIn.