The hotel industry continued on its positive growth trajectory in the second quarter 2014 and for the next 12 months, showing gains in both occupancy and average daily rate (ADR), according to data from the May 2014 TravelClick North American Hospitality Review (NAHR). Both the transient (individual business and leisure travelers) as well as the group segment are seeing steady, healthy growth.
“Similar to last month, TravelClick’s data is showing that leisure travel is one of the main drivers in making the hotel industry thrive right now,” said Tim Hart, Executive Vice President, Business Intelligence, TravelClick. “However, the numbers are strong across the board, and our projected outlook for the next 12 months suggests that the whole market is positioned for growth.”
12 Month Outlook (May 2014 – April 2015)
For the next 12 months (May 2014 – April 2015), overall committed occupancy* is up 4.9 percent when compared with the same time last year. ADR is up 3.4 percent based on reservations currently on the books.
Transient bookings are up 5.2 percent year-over-year and ADR for this segment is up 4.8 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 4.5 percent and ADR gains of 5.6 percent. The transient business (negotiated and retail) segment is up 6.0 percent with an ADR increase of 3.9 percent. Group segment occupancy is ahead by 4.7 percent and ADR is up 0.7 percent, compared to the same time last year.
Hart added, “As we get further into the second quarter, we come up on the summer months where leisure demand is often critical for a hotel’s performance. For this reason, it’s particularly great to see that the numbers for the leisure segment are already so healthy. Hoteliers can look forward to a strong summer season.”
The May NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by April 27, 2014 for the period of May 2014 to April 2015.
*Committed Occupancy – Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
The Second quarter combines historical (April – May) and forward looking data (June)