Market Report U.S.

July Online Room Rates Are Up 10.3% from Last Year

E-forecasting.com and Trivago Release Online ADR Statistics for July

e-forecasting.com Hotel room rates in the top-25 most popular U.S. destinations are averaging $196.84 this July, down from $203.36 in June, according to trivago hotel price indices¹ (tHPI) released today. The U.S. online average daily rate (oADR), the industry’s best analytic for competitive pricing, currently ranges among the top-25 destinations from a high of $333 to a low of $93 this July. Based on industry surveys, e−forecasting.com estimates that in 2014 about one-half of US hotel sales are made online via brand websites and travel agent merchant websites, compared with only one-fourth seven years ago.

Table - U.S. Hotel Biz Analytics July 2014

On year-over-year basis, the U.S. average online ADR is up (+10.3%) in July from a year ago, better than the previous month's reading of (+5.0%). This July, trivago online room rates in Boston are gaining (+17.3%) from last year to $333 a night, making the city the most expensive destination among the top-25 U.S. hotel markets. New York takes the second place in July with an online room rate of $307, after an increase of (+1.7%) from a year ago. In San Francisco, the online room rate in July is growing (+8.4%) from last year to $296 a night, ranking the city in the third place of the most expensive destinations in the United States.

Table - Top 25 Most Popular U.S. DestinationsAt the bottom of the list, the three least expensive, or most affordable, cities to visit this July is Salt Lake City recording a trivago online ADR of $126 a night with a (+1.6%) change from a year ago; Las Vegas posts an online ADR of $120 with a (+10.1%) change from last year; and lastly, Phoenix marks an online ADR of $93 with a nil change from a year ago. With a median online ADR of $175 amongst the top-25 most popular U.S. destinations, New Orleans is the country's average affordable city to visit this July.

Moving from data to hotel-biz-analytics®, e−forecasting.com's Smoothed Seasonally Adjusted (SSA)² U.S. average online room rate hit $199.72 in July. On a month-over-month basis - the hoteliers' analytic for tracking changes of what's now vs. what's happened in comparison to twelve months ago - SSA online ADR this July is up (+1.1%) from the previous month, which is lower than June's monthly change of (+1.4%). Looking at the top-25 hotel destinations, the month-to-month percent change in July ranges from a high of (+5.6%) in Seattle to a low of (−5.7%) in Chicago. Amongst the top-25 destinations, the SSA online monthly room rate is growing in 21 cities; and is falling or staying flat in 4 cities.

"The latest US Monthly Hotel Forecast predicts online room rates to jump 7.2% for the whole year, the second highest annual growth rate on record after an increase of 7.4% in 2006," said Maria Sogard, CEO of e­forecasting.com. For a complimentary copy of the full US Monthly Hotel Forecast with two-year predictions of occupancy, ADR, RevPAR, online ADR and predictive analytics for investing in hotel properties, email us at info@e-forecasting.com with subject: USHOTfcast.

Looking at profitability, hoteliers' ultimate gauge for decision-making, profits per room are up (+7.6%) on a year-over-year basis in July, since U.S. trivago's average online room rate has gained (+10.3%) while e−forecasting.com national unit (per room) cost index is up (+2.5%). For U.S. hoteliers, year-over-year profit margins posted a reading of (+2.3%) in the previous month (June), compared to a mark of (+0.5%) a year ago (July 2013). Using trivago's online hotel room rates for the top-25 U.S. destinations and e−forecasting.com's city-centric hotel unit (room) cost indices, year-over-year percent change in profits per room currently range from a high of (+20.7%) in Seattle to a low of (−1.5%) in New York in July. Amongst the top-25 destinations, profits per room are up in 22 cities; they are down or are flat in three cities.

On tracking monthly the risk for business losses in providing services per room, the probability for U.S. hoteliers being in a negative profits (losses) phase of the industry's business cycle hit 0% in July, which is the same as in June. In the top-25 hotel destinations, the risk for hoteliers being in a period of losses per room in July ranging from a high of 96% in Miami to a low of 1% in San Jose. The probability of losses per room is above 50% in 5 cities; it is 50 or below in 20 cities.

Graph - Las Vegas Hotel Market Performance

About e-forecasting.com

Founded in Durham, NH in 1994, e-forecasting.com is a predictive intelligence consulting firm offering to clients customized solutions for what’s next. For over 15 years, its hotel insights division has focused on hotel predictive analytics and forecasting products for the top destinations around the world to enhance its clients competitive advantage and improve their bottom line.

About trivago

Founded in Düsseldorf in 2005 with operations in 39 countries, trivago is the world’s largest online hotel search site, comparing room rates from over 700,000 hotels on over 200 booking sites worldwide. Each month, more than 45 million visitors use trivago’s unique online technology, which compares 5 billion hotel deals a day - more than a trillion a year - and saves them an average of 35% per booking. Visit online http://www.trivago.com.



Logos, product and company names mentioned are the property of their respective owners.

Request Information from this organization

Please click the link below to request more information from the organization or company featured in this article.

Request Information from e-forecasting.com