Hotel room rates in the top-25 most popular U.S. destinations averaged $211.23 in October, up from $190.54 in September, 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, ranged among the top-25 destinations from a high of $442 to a low of $116 in October.
On year-over-year basis, the U.S. average online ADR rose (+4.6%) in October from a year ago, better than the previous month's reading of (−2.7%). In October, trivago online room rates in New York rose (+4.5%) from last year to $442 a night, making the city the most expensive destination among the top-25 U.S. hotel markets. Boston took the second place in October with an online room rate of $408, after an increase of (+4.3%) from a year ago. In Washington D.C., the online room rate in October rose (+5.8%) from last year to $327 a night, ranking the city in the third place of the most expensive destinations in the United States.
At the bottom of the list, the three least expensive, or most affordable, cities to visit in October were Orlando with a trivago online ADR of $122 a night after a (−0.8%) change from a year ago; Indianapolis with an online ADR of $120 after a (+1.7%) change; and lastly, San Antonio with an online ADR of $116 after a nil change from a year ago. With a median online ADR of $158 amongst the top-25 most popular U.S. destinations, Atlanta was the country's average affordable city to visit in October.
Moving from data to hotel-biz-analytics®, e−forecasting.com's Smoothed Seasonally Adjusted (SSA)² U.S. average online room rate hit $183.14 in October. 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 in October declined (−0.4%) from the previous month, which was lower than September's monthly change of (−0.2%). Looking at the top-25 hotel destinations, the month-to-month percent change in October ranged from a high of (+2.9%) in Miami to a low of (−3.2%) in Phoenix. Amongst the top-25 destinations, the SSA online monthly room rate increased in 13 cities; and declined or stayed flat in 12 cities.
Looking at profitability, hoteliers' ultimate gauge for decision-making, profits per room increased (+1.1%) on a year-over-year basis in October, since U.S. trivago's average online room rate rose (+4.6%) while e−forecasting.com national unit (per room) cost index went up (+3.5%). For U.S. hoteliers, year-over-year profit margins posted a reading of (−5.8%) in the previous month (September), compared to a mark of (+6.7%) a year ago (October 2012). 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 ranged from a high of (+22.5%) in Salt Lake City to a low of (−7.7%) in Chicago in October. Amongst the top-25 destinations, profits per room increased in 15 cities; they declined or stayed flat in 10 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 16% in October, which is higher than September's reading of 9%. In the top-25 hotel destinations, the risk for hoteliers being in a period of losses per room in October ranged from a high of 98% in Detroit to a low of 1% in Salt Lake City. The probability of losses per room was above 50% in 11 cities; it was 50 or below in 14 cities.
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.
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.
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