Hotels in major North American markets continued to maintain positive growth in rate across all travel segments according to data from the February 2015 TravelClick North American Hospitality Review (NAHR). Overall, average daily rate (ADR) growth continues to be the metric for growth, requiring hotels to be vigilant in monitoring their local markets.
“As travelers deal with the deep freeze of the winter months hoteliers come to rely on ADR to drive hotel performance and sustain positive revenue per available room (RevPAR),” said John Hach, Senior Vice President, Global Product Management at TravelClick. “Looking ahead, the pace of group bookings in Q2 shows a decline; however we are not overly concerned as most market segments remain relatively strong.
12 Month Outlook (February 2015 – January 2016)
For the next 12 months (February 2015 – January 2016), overall committed occupancy* is up 1.8 percent when compared to the same time last year. ADR is up 4.7 percent based on reservations currently on the books.
Transient bookings are up 2.2 percent year-over-year and ADR for this segment is up 5.4 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 2.4 percent and ADR gains of 4.0 percent. Transient business (negotiated and retail) segment occupancy is up 2.1 percent and ADR is up 6.4 percent. Group segment occupancy is ahead by 1.6 percent and ADR is up 3.4 percent, compared to the same time last year.
Hach continued, “Given that this has been one of the worst winters on record for many parts of the country, it is encouraging to see that occupancy for Q1 remains stable.”
The February NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by February 1, 2015 from the period of February 2015 to January 2016.
*Committed Occupancy – (Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
The first quarter combines historical data (January) and forward looking data (February-March)
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 38,000 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.