Marriott targets budget travelers with new mid-scale extended-stay option

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Marriott International CEO Discusses Budget Travelers

Marriott International CEO Anthony Capuano recently appeared on “The Claman Countdown” to share insights on budget travelers. He mentioned that lower-income consumers are prioritizing travel but are looking for more affordable options, based on spending data from the company’s credit card relationships.

This trend has led Marriott International to focus on the mid-scale segment, a market they historically did not operate in. This initiative began with the acquisition of City Express and the development of an extended-stay mid-scale product called StudioRes.

The first StudioRes property opened in Fort Myers, Florida, offering studio-style rooms with various amenities. Capuano emphasized that the key differentiator for StudioRes is its pricing strategy.

Marriott International CEO Anthony Capuano discussing the company’s focus on the mid-scale segment for budget travelers.

Capuano explained that StudioRes caters to temporary assignment workers, digital nomads, and other cost-conscious consumers. The product’s affordability has resonated well with this demographic.

Additionally, Capuano highlighted Marriott’s diverse portfolio, which includes well-known brands like the Ritz-Carlton, St. Regis, Sheraton, Courtyard, and Westin. He emphasized the company’s ability to provide suitable accommodations for various trip purposes, regardless of income.

In the first quarter, Marriott International reported $6.26 billion in revenue and a net income of $665 million.