0:00

It's time to take the quiz. Five questions,

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five minutes a day, five days a week.

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Take the quiz every weekday at the quiz

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dot Fox and then listen to the quiz

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podcast to find out how you did. Clay,

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Cher and of course listen to the quiz

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at the quiz dot Fox. I'm

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Liz Klayman and this is the Fox

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Business Rundown. It's

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Friday, May 24th, 2024 and

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with Memorial Day weekend upon us, Americans

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have travel on their minds. While some

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already have their plans locked in, more

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than half of Americans surveyed say they

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are not taking a summer travel vacation

0:38

due to the increased cost. But some

0:41

companies say hold up, they've got

0:43

options for how to vacay on a

0:45

budget. Well, the summer looks

0:47

really promising. We're seeing forward bookings here

0:49

in the U.S. for Memorial Day up

0:52

a few points over a strong 23

0:54

and forward bookings into Western Europe coming

0:56

out of the U.S. up over 7

0:58

percent. So we're fighting for it. Memorial

1:01

Day weekend is here. It marks

1:03

for so many people the start

1:05

of the summer vacation season. Tens

1:07

of millions of Americans have already

1:09

started stuffing their carry-on bags, packing

1:11

up the car, readying their camping

1:13

gear. The cruise line industry saying

1:15

ticket sales are nearing pre-pandemic levels.

1:17

But while it is true many

1:19

are getting into the swing of

1:21

summer travel, others are hesitant. A

1:23

Fox News poll released this week

1:25

showed 55 percent

1:28

of Americans are not planning on

1:30

taking a vacation this summer. Why not?

1:32

They say high prices. So

1:35

yes, money is an issue for some, but

1:37

it depends on who you are. One

1:39

study finds that millennials and Gen Zers

1:42

are most likely to weigh the right

1:44

travel experience over the cost of the

1:46

trip. Let's focus on the

1:48

folks getting ready to embrace the summer travel

1:50

season. It was just a couple of years

1:53

ago during the pandemic and the lockdowns that

1:55

travel and hospitality were down for the count.

1:58

Airlines stopped flying. Hotels around the shut

2:00

down or opened exclusively and gratified

2:02

the way for first responders and

2:05

hospital workers. That has now

2:07

thankfully passed and then we saw

2:09

the so-called revenge travel where people

2:11

went everywhere and then we saw

2:13

inflation boil up. What's the conversation

2:16

right now as we head into

2:18

Memorial Day weekend for

2:20

the American travel habit this

2:22

summer? You're right it

2:24

is pretty remarkable how far we've

2:26

come from the dark days of

2:28

the pandemic. Demand is back and

2:30

the revenge travel concept is interesting.

2:33

I actually think about it more through the

2:35

lens of the resiliency of travel. We

2:37

are so lucky to have the perfect

2:39

person to ask. Anthony Capuano, president

2:41

and CEO of Marriott International and

2:44

folks keep in mind Marriott owns

2:46

and or runs everything from the

2:48

Ritz Carlton, the St. Regis, Marriott,

2:51

W hotels, Edition, Sheraton, Fairfield

2:54

Inn & Suites, Moxie hotels

2:56

and more. During the

2:58

pandemic when folks were locked down they

3:01

really realized how much they craved the

3:03

opportunity to explore the world whether

3:06

it's down the street or halfway around the

3:08

world and we see that in our demand

3:10

patterns across geographies and

3:12

across demand so as

3:14

we look into the summer that's

3:16

part of the reason I quibble a little bit with

3:19

this idea of revenge travel because that would

3:21

suggest it's over now and

3:24

quite the contrary. We continue to see

3:26

strong steady growth in demand when we

3:28

look at the early bookings for Memorial

3:31

Day weekend we see a

3:33

couple points up over a really strong

3:35

2023. I

3:37

saw a number the other day AAA suggested

3:39

that 44 million Americans

3:41

will travel on Memorial Day

3:44

weekend and we see that in

3:46

the data. It's really encouraging and

3:48

then when you think about outbound we

3:51

look at our outbound US to

3:53

Western Europe travel those early

3:55

bookings are up 7% over a

3:57

record summer last year. Clay

4:00

Travis, join me for Outkick

4:02

the show as we dive

4:04

deep into a mix of

4:06

topics, new episodes available Monday

4:08

to Friday on your favorite

4:10

podcast platform and watch directly

4:13

on outkick.com/watch. It

4:15

all sounds very good, but let's not deny

4:17

that we are hit at least at the

4:19

moment by inflation in many

4:21

cases. Yes, indeed. It has come way

4:24

down from its height in June of

4:26

2022. But Anthony,

4:28

what are you seeing in the current

4:30

economy and how it's impacting Americans travel

4:32

budgets? So we

4:35

obviously we have more than 30 grams

4:37

in the portfolio and that portfolio of

4:40

brands spans multiple price points. We're

4:43

the industry's largest luxury operator.

4:46

And in the luxury tier, we really are

4:48

not seeing much of an impact. As

4:50

you move down the chain scale, we

4:53

see a little bit of softness in the

4:55

mid scale, the upper up or the upscale

4:58

tier. But again,

5:00

in the US, for instance, we just

5:02

did our Q1 earnings call global

5:04

rev car revenue for available

5:06

room with up 4.2% in

5:09

the quarter. In the

5:11

US, we're kind of normalizing demand patterns. Now

5:13

we were up about one and a half

5:15

percent. But in the international markets, we were

5:17

up 11% and over 16% across much of Asia.

5:24

Well we've got people listening right now, Tony,

5:26

who say even if they have the

5:28

money, they want to be careful about it because

5:30

who knows if we'll see a recession. And by

5:33

the way, folks, let's just be honest. Recessions are

5:35

supposed to come every couple of years, seven to

5:37

12 years. We are overdue for one. I know

5:39

nobody wants to hear that. But what

5:42

do you have as far as

5:44

good ideas and pieces of advice,

5:46

Tony, for giving a family traveling

5:48

on a budget? So

5:51

I'd say a few things. Number one, one

5:53

of the great benefits of the breadth of

5:55

our global footprint, we're in 141 countries

5:57

today with nearly So

6:03

if a budget-conscious U.S. traveler

6:06

would like to take vacation but they've got

6:08

the sort of trepidation you describe, we've

6:10

got a wealth of select

6:13

service options, some of which are extended

6:15

stay focused. So you think about

6:17

a brand like Residence Inn or Element, which

6:20

provides a small

6:22

kitchenette, a public room for the

6:24

family to gather, as well as

6:27

separate bedrooms. Many of those

6:29

are in drive-to destinations and so that

6:31

is a very value-focused

6:34

alternative for many of those travelers that

6:36

have the sort of concerns you describe. I have

6:39

to say, two kids, now

6:41

they're adults but I always wanted a

6:43

kitchenette because I didn't want to eat

6:45

out dinner every single night, especially if

6:47

I was at a resort. So you

6:50

keep costs down if you can stuff

6:52

the fridge with some basics and food,

6:54

whether it's skiing, in-veil,

6:56

or somewhere else. I tell you, it

6:58

really saves money to be able to

7:01

do that. Price

7:03

is a bigger factor for would-be travelers

7:06

who yearn to take a trip. What

7:09

are companies like Marriott doing to

7:11

accommodate and entice sort of the

7:13

consumer whose top consideration is

7:16

seriously keeping costs in check? So

7:18

maybe the best deliberate

7:21

step we've made is for

7:23

the entirety of my career, Marriott has not

7:25

had an offering in the mid-scale to you.

7:28

And we acquired a brand called

7:30

City Express Hotels in Mexico which

7:32

signaled our entry into mid-scale. We've

7:35

now announced a US extended

7:37

stay-focused mid-scale platform called

7:40

Studio Res. What do I get? Can

7:42

I just interrupt you? What do we get? Do

7:45

we get free Wi-Fi? Do we get free breakfast? If you're

7:47

a Bonboy member, absolutely. I am.

7:51

Think of it as

7:54

a more value-focused extended-stay

7:56

product. In Europe, Middle East,

7:58

and Africa, we're rolling the line. rolling out 4

8:01

points Express, which is their version

8:03

of that mid-scale offering. So

8:05

the fact that on a global basis,

8:07

we're rolling out mid-scale, I think reflects

8:09

that there is a segment of the

8:11

public very anxious to travel, but very

8:14

focused on value. Okay, Tony,

8:16

let's talk travel trends. I know you're

8:19

in Monaco for the Monaco Grand Prix.

8:21

You lucky brat, I'm totally jealous. You're

8:23

in the south of France, Formula One.

8:25

Obviously, we're talking about a very luxe

8:28

experience for the high-end Formula One

8:30

race fan. Tell me where

8:33

you are right now and describe the offering

8:35

that Marriott has. Great. So

8:37

we've had a longstanding partnership with

8:40

Total Wolf and the AMG Petronas

8:42

Mercedes F1 team. This

8:45

year for the Monaco race, Mercedes

8:47

has actually chartered Avrima, which is

8:49

the first of our Ritz-Carlton yacht

8:51

collection ships. We're anchored

8:54

here in the marina, just off the coast.

8:57

AMG Petronas is doing all of

8:59

their activations here on board. We've

9:02

got some great events with Mercedes

9:04

partners. We've got Envoy members on

9:06

board. Some of our owners are

9:08

on board with us as well. And

9:10

so it's really a great way to see the

9:12

race, take in all that Monaco has

9:14

to offer, but then retreat to

9:17

this really extraordinary ship. Give me some

9:19

golly gee whiz facts about the ship, some of

9:21

the exciting offerings that it has. Sure.

9:24

So it's 149 cabins, about 600 foot

9:27

long ship. So relatively, we

9:30

are quite deliberate in calling it the Ritz-Carlton

9:32

yacht collection. It is not a cruise

9:34

ship. It doesn't have a big

9:37

showroom. It doesn't have a buffet. In fact,

9:39

I had dinner here last night with some

9:41

colleagues in a restaurant called C,

9:44

which is run by the chef

9:46

from the Ritz-Carlton Wolfsburg, who's received

9:48

three Michelin stars for 16 straight

9:50

years. Oh, for those who don't know,

9:52

Michelin, that is the big deal for

9:54

foodies. Absolutely. And

9:57

so you've got multiple decks, multiple

9:59

terraces. a

10:01

wide variety of food and

10:03

beverage alternatives, a single malt

10:06

and whiskey bar and cigar

10:08

bar. So terrific offering. And

10:10

then Mercedes has done a great job.

10:12

They have 20 tender boats available

10:15

to shuttle their guests back and forth. Wow.

10:19

That is so chic. Oh my goodness.

10:22

What kind of bookings are you seeing

10:24

for destination events beyond Formula One, like

10:26

the Summer Olympics in Paris? Yeah,

10:28

it's one of the real powers

10:30

of the Bonvoy platform, is the

10:33

ability to have our members look

10:35

beyond the simple functionality

10:37

of earning and redeeming points for

10:40

hotel sales. So when you look

10:42

at some of the partnerships we've done under the

10:44

umbrella of Bonvoy, we

10:46

talked about Mercedes. We're the official

10:48

hotel partner of the NFL, official

10:50

hotel partner of Manchester United. And

10:53

we're now an official sponsor of the

10:56

Taylor Swift era tour through Europe

10:58

and her last leg through the US. And

11:01

so all of these once in a

11:03

lifetime experiences can be accessed

11:05

by our Bonvoy members. Fantastic.

11:08

Now I really need you to answer honestly,

11:10

because I personally want to know, I know

11:13

a lot of our listeners want to know,

11:16

what is the secret, I don't

11:18

know, deal that you guys have

11:20

that maybe some of the most

11:22

experienced Bonvoy members know about and

11:25

that perhaps others might be able to

11:27

reach for. So I

11:29

would say a few things. Number

11:31

one, we now highlight on the

11:33

Bonvoy app one point bidding opportunity.

11:36

So these incredible once in a

11:38

lifetime experiences that you can compete

11:40

for by bidding just a single point from

11:43

your account. And a great

11:45

example of that, as you know, I think

11:47

we talked about this once before, we have

11:49

this exciting new partnership with MGM

11:52

Resorts. One of the

11:54

one point opportunities we had was actually

11:56

to sit at a private table, lagooned.

12:00

side there at Bellagio and actually

12:02

program the fountain with all of

12:04

your forces. Oh

12:06

my gosh. Okay, so you do that on the

12:08

website? You can toss your hat into the ring, so to speak?

12:11

Absolutely, yes. Oh, cool. Tony, thank

12:13

you so much. I know you've got to

12:15

go out and see that Formula One race.

12:17

Have a fabulous time. Thank

12:19

you so much, Liz, for having me and root

12:21

on Mercedes. I'm Guy Benson. Join

12:29

me weekdays at 3 p.m. Eastern as we

12:31

break down the biggest stories of the day

12:33

with some of the biggest newsmakers and

12:36

guests. Listen live on the Fox News

12:38

app or get the free podcast at

12:40

guybensonshow.com.