The current hotel occupancy outlook for 2014 brings some welcome good news for the group segment, while the transient segment (individual business and leisure travelers) continues to look strong with healthy occupancy and average daily rate (ADR) growth, according to data from the October 2013 TravelClick North American Hospitality Review (NAHR).
“In 2013, group occupancy and ADR growth has been a disappointment,” said Tim Hart, executive vice president, business intelligence, TravelClick. “While it is too late to see much of a turnaround in 2013, the outlook for 2014 is improving, with group sales over the past month outpacing the same period last year by almost 50 percent.”
12 Month Outlook (October 2013 – September 2014)
For the next 12 months (October 2013 - September 2014), overall committed occupancy* is up 7.4 percent when compared with the same time last year. ADR is up 3.0 percent based on reservations currently on the books.
Transient bookings are up 6.8 percent year-over-year and ADR for this segment is up 4.3 percent. The transient leisure segment is showing occupancy gains of 7.4 percent and ADR gains of 3.7 percent. The transient business segment is showing occupancy gains of 5.4 percent and a 4.8 percent rise in ADR.
Group segment occupancy is ahead by 7.6 percent and ADR remains flat (up 0.6 percent), compared to the same time last year.
“Q1 2014 appears to be a strong quarter across all segments,” said Hart. “Hotels that put effective distribution, pricing and revenue management strategies in place will have ample opportunity in this favorable market environment to drive positive share and ADR outcomes.”
The October NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by September 29, 2013 for the period of October 2013 to September 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.
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