'You're welcome' isn't especially formal. It's a neutral response which is appropriate for any situation.

"You are welcome" is fine to use. In a casual conversation most native speakers will contract the phrase to "You're welcome".

It is accepted to say "You are welcome" but in the hospitality industry we never say "You are welcome" we are trained and required to say "It's my pleasure" or "My pleasure ." It is our means of communicating genuine gratitude after interaction with hotel guests or clients.

It is accepted to say "You are welcome" but in the hospitality industry we never say "You are welcome" we are trained and required to say "It's my pleasure" or "My pleasure ." It is our means of communicating genuine gratitude after interaction with hotel guests or clients.

in casual conversation if you know the person and you want to say you are welcome. A very friendly answer could be ""Don't mention it." It is very casual. Of course, you're welcome is always correct.