The North American hotel sector started the first month of 2014 with moderate increases in room rates and bookings, according to data from the January 2014 TravelClick North American Hospitality Review (NAHR). While demand in all segments grew, the transient segment (individual business and leisure travelers) was the primary driver of occupancy growth.
“After strong group sales pace early in the fourth quarter of last year, it is a bit disappointing that group bookings have lost some steam heading into the New Year,” said Tim Hart, executive vice president, business intelligence, TravelClick. “That being said, the group segment is still ahead of where it was this time last year, and strong transient demand and ADR growth continues to drive a positive overall outlook for the first part of 2014.”
12 Month Outlook (January 2014 – December 2014)
For the next 12 months (January 2014 – December 2014), overall committed occupancy* is up 3.3 percent when compared with the same time last year. Average daily rates (ADR) are up 3.9 percent based on reservations currently on the books.
Transient bookings are up 5.3 percent year-over-year and ADR for this segment is up 5.2 percent. The transient leisure segment is showing occupancy gains of 8.4 percent and ADR gains of 5.7 percent. The transient business segment is flat (down 0.6 percent); however ADR is up 5.7 percent.
Group segment occupancy is ahead by 2.7 percent and ADR is up 1.6 percent, compared to the same time last year.
Hart concluded, “The 4.8 percent growth in transient leisure demand is encouraging, and may be indicative of a strengthening economy. The strong growth in transient business ADR is also positive. That segment booked at a lower rate growth in 2013. It appears that hotels were able to negotiate rate increases for 2014, which will support healthy ADR growth this year.”
The January NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by December 29, 2013 for the period of January 2014 to December 2014.
*Committed Occupancy - (Transient rooms reserved + group rooms committed)/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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