While hotels continue to see minimal growth in occupancy, average daily rates (ADR) are increasing across all segments for the third quarter, according to data from the August 2013 TravelClick North American Hospitality Review (NAHR).
“While hotels are experiencing RevPAR growth overall – ADR will be the main source of growth for hotels in the third quarter of 2013. We expect this ADR–led growth to continue over the remainder of 2013 heading into 2014, particularly given the low rate of occupancy growth in the group segment,” said Tim Hart, executive vice president, business intelligence, TravelClick.
12 Month Outlook (August 2013 – July 2014)
When looking at the next 12 months (August 2013 - July 2014), overall committed occupancy* is up 2.2 percent versus the same time last year. ADR is up 3.7 percent based on reservations currently on the books.
Transient bookings – made up of individual business and leisure travelers – are up 5.3 percent year-over-year and ADR for this segment is up 4.7 percent. The transient leisure segment is showing occupancy gains of 4.9 percent and ADR gains of 4.9 percent. The transient business segment is showing occupancy gains of 5.5 percent and a 4.4 percent rise in ADR.
The group segment is relatively flat, experiencing an occupancy increase of 1.0 percent and an ADR gain of 1.3 percent compared to the same time last year.
The August NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by July 28, 2013 for the period of August 2013 to July 2014.
*Committed Occupancy - (Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
About TravelClick, Inc.
TravelClick (TravelClick.com) provides innovative cloud-based solutions for hotels around the globe to grow their revenue reduce costs and improve performance. TravelClick offers hotels world-class reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, we help more than 36,000 hotel clients in over 160 countries drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape. TravelClick has offices in New York, Atlanta, Philadelphia, Chicago, Barcelona, Dubai, Hong Kong, Houston, Melbourne, Orlando, Shanghai, Singapore and Tokyo. Follow us on twitter.com/TravelClick and facebook.com/TravelClick.
Logos, product and company names mentioned are the property of their respective owners.