Marriott International has lowered its 2025 revenue forecast, becoming the latest travel company to feel the effects of U.S. economic policies, including tariffs introduced by President Donald Trump.
The hotel chain now expects room revenue to grow by just 1.5% to 3.5% in 2025. This is down from its earlier projection of 2% to 4%, according to a report from Reuters.
Marriott also reported a 10% drop in room bookings made by the U.S. government. The company linked this decline to recent federal staff layoffs under the Trump administration.
During a recent earnings call, Marriott officials said they are unsure about the rest of the year. They pointed to short booking windows as a sign that consumers are hesitant to commit to travel. This, they said, reflects broader concerns about the economy and personal spending.
Marriott is not the only company in the travel industry to revise its financial outlook. Several major U.S. airlines have also lowered their forecasts due to the same economic concerns.
United Airlines said in March that government-related bookings had dropped by 50%. The airline said this was due to budget and staffing cuts made by the Trump administration. United also warned that domestic leisure travel could decline if government spending continues to shrink.
Other airlines have reported similar concerns. American Airlines lowered its first-quarter profit forecast by 7%. Delta Airlines saw an 11% drop in its forecast, and Southwest Airlines reduced its projection by 3%.
These airlines also expressed worry about the long-term impact of tariffs and the possibility of a recession. Just a few months ago, most carriers had reported strong demand and high prices for travel.
In January, Delta CEO Ed Bastian said 2025 could be the most profitable year in the company’s history. His comments came after Delta posted better-than-expected profits for the fourth quarter of 2024.
Marriott’s latest forecast shows that the hotel sector is feeling the same pressure. Industry-wide, companies are adjusting to changing consumer behavior and policy-driven economic uncertainty.
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