US shutdown affecting hotel sales

Long lines at TSA caused by government shutdown.

Marriott International is experiencing a double-digit decline due to the US government’s extended shutdown, according to the company’s global chief commercial officer.

Air traffic controllers are working unpaid, and most US airports are operating with a barebones team of essential operational staff. Warnings have been issued against travelling in the States, advising of delays and disruptions.

With national parks unmanned, hotels in areas like Washington whose busiest season comes at this time of year when tourists flock to the parks will be feeling the heat of the shutdown.

“The shutdown is impacting our business and Washington D.C. is just one example. We have 150 hotels, and they’re seeing a decline in business, double digits, as a result of this,” said Stephanie Linnartz, global chief commercial officer, Marriott International.

“Both sides need to get together and start talking.”

The States’ second-biggest airline, Delta Air Lines, is also feeling the pain of the shutdown, and are expecting to lose $25 million in January alone.

“We are seeing some pressure in our business. On the revenue front, we’re experiencing about $25 million per month in lower government travel,” said Ed Bastian, Delta CEO, in a fourth quarter earnings call.

“The bigger impact is on our operation. With non-essential work at the FAA shutdown, our Airbus A220 start date is likely to be pushed back due to delays in the certification process. This is also hampering our ability to put seven other new aircraft deliveries into service, but it’s our customers who are seeing the biggest impact with longer lines at airport security.”