“We continue to see incredible demand for travel and experiences,” Capuano told Yahoo! finances. “It feels like a fundamental permanent shift that consumers are prioritizing spending on travel and experiences versus buying hard goods.”

The hotel chain expects revenue growth in 2026, with revenue driven by adding rooms to its portfolio and higher co-branded credit card fees. Meanwhile the US business is slightly weaker in the fourth quarter due to the government shutdown, Capuano says fundamentals remain strong.

While Capuano recognized the “K-shaped” economy and an insatiable demand for luxury bookings, he said Yahoo “Despite low income consumers, they prioritize spending on travel and experiences, in a more economical way.”

Even as inflation, high rates, and political uncertainty weigh on household budgets, Americans are stubbornly hanging on to their vacations. Surveys show more than three out of four Americans plan to travel by 2025, with nearly a third saying they will actually spend more on trips than last year—even if that means forgoing other purchases or shortening stays.

Consumers are not a threat, but climate change is

The number of home entertainment has dropped back to roughly pre-pandemic levels, and destinations are reporting that travelers are becoming more value-conscious—less determined to go.

Such strength shows a wider shift to the experiences of material things. Over the years, spending on travel, dining, and entertainment has surpassed many categories of physical goods, and new data suggests that pattern holds: Consumers are still willing to splurge on “real-world” memories even if they’re not shopping for big-ticket items.

The so-called “funflation” boom—when people factor out prices for concerts, festivals, and travel—has cooled from its 2023 peak, but it hasn’t gone as normal, with live events and leisure travel still getting healthy demand at more sustainable price points.

While the American consumer remains strong, Marriott sees a more volatile variable as a potential threat to the business.

Addressing the impact of climate change on locations and driving operating locations, the company adjusted the words “may” to “have” in the latest 10K report, travel blog The change is noticeable.

“Natural disasters, extreme weather, and other climate impacts and events (including sea level rise, extreme heat or cold weather, hurricanes and typhoons, floods, water shortages, fires, and droughts) have affected, and continue to affect, the hotels in our system, including causing physical damage that
prevent or limit operations at the property or result in increased insurance, energy or other operating costs,” Marriott said in the report.