Market Report U.S.

July Profits Per Room Rise 8.4% for US Hoteliers

Hotel room rates in the top-25 most popular U.S. destinations are averaging $217.6 this July, down from $220.45 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 $389 to a low of $101 this July.

e-forecasting.com Hotel room rates in the top-25 most popular U.S. destinations are averaging $217.6 this July, down from $220.45 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 $389 to a low of $101 this July. Based on industry surveys, e−forecasting.com estimates that in 2015 about 60% of all reservations are made online via brand websites and travel agent merchant websites, compared with only one-fourth eight years ago.

Table - Top 25 U.S. Destinations July 2015On year-over-year basis, the U.S. average online ADR is up (+10.6%) in July from a year ago, higher than the previous month's growth rate reading of (+8.4%). This July, trivago online room rates in Boston are gaining (+16.8%) from last year to $389 a night, making the city the most expensive destination among the top-25 U.S. hotel markets.  San Francisco takes the second place in July with an online room rate of $324, after an increase of (+9.5%) from a year ago. In Seattle, the online room rate in July is growing (+13.4%) from last year to $321 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 this July is Salt Lake City recording a trivago online ADR of $134 a night with a (+6.3%) change from a year ago; Las Vegas posts an online ADR of $133 with a (+10.8%) change from last year; and lastly, Phoenix marks an online ADR of $101 with a nil change from a year ago. With a median online ADR of $198 amongst the top-25 most popular U.S. destinations, Atlanta 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 has hit $213.37 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 (+1.5%) from the previous month, which is the same percent change as in the previous month. Looking at the top-25 hotel destinations, the month-to-month percent change in July ranges from a high of (+2.9%) in Seattle to a low of (+0.6%) in San Jose. Amongst the top-25 destinations, the SSA online monthly room rate is growing in all cities; and is falling or staying flat in none of the cities.

"The latest US Monthly Hotel Forecast predicts online room rates to increase 1.2% in 2016 from 2015," 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, costs per room, profitability 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 (+8.4%) on a year-over-year basis in July, since U.S. trivago's average online room rate has gained (+10.6%) while e−forecasting.com national unit (per room) cost index is up (+2.0%). For U.S. hoteliers, year-over-year profit margins posted a reading of (+6.5%) in the previous month (June), compared to a mark of (+9.6%) a year ago (July 2014). 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 (+23.4%) in San Antonio to a low of (−6.4%) in Philadelphia in July. Amongst the top-25 destinations, profits per room are up in 23 cities; they are down or are flat in two 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 23% in Salt Lake City to a low of 1% in San Jose. The probability of losses per room is above 50% in none of the cities; it is 50 or below in all cities.

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.



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