by Mia Taylor
Last updated: 5:00 PM ET, Tue May 6, 2025
Another major travel brand is revising its revenue forecast amid economic uncertainties triggered by President Donald Trump's tariffs.
Hotel giant Marriott International is the latest to join the growing group of travel companies and brands impacted by the country's new tariff policy. The company is now projecting 2025 room revenue growth of just 1.5 percent to 3.5 percent, down from its earlier forecasts of 2 percent to 4 percent, according to Reuters.
In addition, the hotel operator says it's been hit by a 10 percent drop in nights booked by the U.S. government following Trump's federal staff layoffs, according to Reuters.
During an earnings call, Marriott officials also said that projections for the rest of the year remain uncertain because of short booking windows, a sign of growing consumer uncertainty and increased hesitancy to spend money on travel expenses.
Marriott is the latest travel industry company to scale back its revenue forecasts for 2025 in response to growing economic uncertainty. Most major U.S.-based airlines are also feeling the impact of the new administration policies and revising their forecasts.
United Airlines said in March, for instance, that it was experiencing a sharp decline in government related business. Bookings were down 50 percent as Trump's spending and staffing cuts unfolded. The carrier also cautioned that the reduced government spending will impact domestic leisure travel.
Similarly, American Airlines reported a seven percent decline in its first-quarter profit forecast, while Delta's dropped 11 percent, and Southwest's fell by three percent.
The airlines have also cited concerns about Trump's tariffs and the possibility of a recession. This starkly contrasts with just a few months ago, when carriers reported strong travel demand and high pricing across their networks.
Delta CEO Ed Bastian predicted in January that 2025 would be the carrier's most profitable year in the airline's history. His comments came on the heels of what had been higher-than-expected fourth-quarter profits.
As for the hotel industry, Marriott is not alone in revising forecasts.
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