Hotels in major North American markets are continuing to experience steady growth in both rate and occupancy across travel segments, according to data from the July 2014 TravelClick North American Hospitality Review (NAHR).
“While the transient segment has been performing well for months, the group segment’s recent increase provides an opportunity for hoteliers to take measured transient pricing action to gradually increase average daily rates (ADR),” said John Hach, Senior Vice President, Global Product Management of TravelClick. “Current and future reservation pace continues to show solid gains across the board, providing an opportunity for hoteliers to take calculated risks to grow revenue per available room (RevPAR) at an accelerated rate.”
12 Month Outlook (July 2014 – June 2015)
For the next 12 months (July 2014 – June 2015), overall committed occupancy* is up 3.0 percent when compared to the same time last year. ADR is up 4.1 percent based on reservations currently on the books.
Transient bookings are up 4.9 percent year-over-year and ADR for this segment is up 5.4 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 4.7 percent and ADR gains of 6.0 percent. The transient business (negotiated and retail) segment is up 5.1 percent with an ADR increase of 4.5 percent. Group segment occupancy is ahead by 2.1 percent and ADR is up 1.0 percent, compared to the same time last year.
Hach continued, “This 12 month outlook, which includes committed occupancy through the second quarter of 2015, shows early indications of continued advance reservation increases in most major markets. However, there is a modest deceleration of growth into next year. Because of this, it’s important for hoteliers to closely monitor advance booking pace, especially within major leisure and group markets.”
The July NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by June 29, 2014 from the period of July 2014 to June 2015.
*Committed Occupancy – Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
The Third quarter combines forward looking data (July – September)