Hotel Booking Trends

Weakening Spring New Reservation Demand Produces Cloudy Outlook for Hoteliers

However, Group Booking Growth Continues to Provide Promise in Majority of North American Markets

TravelCLICK

New reservation commitments added over the last month are down -7.1 percent, according to new data from TravelClick’s April 2016 North American Hospitality Review (NAHR). These numbers highlight hotels’ continued fragmented performance during this season. 

However, there remains some positive news, as 18 of the top 25 North American markets are still showing overall year-over-year increases in committed occupancy* growth.

“New reservation growth has considerably weakened over the past month,” said John Hach, TravelClick’s senior industry analyst. “The decline is more prevalent within the business travel segment and is now impacting overall transient demand. On the positive side, committed occupancy is showing an increase of 2.5 percent over last year, and there is encouraging group reservation demand in the majority of North American markets.”

Twelve-Month Outlook (April 2016 – March 2017)

For the next 12 months (April 2016 – March 2017), transient bookings are down -0.2 percent year-over-year, and ADR for this segment is up 2.0 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is relatively flat, showing occupancy gains of 0.2 percent, with ADR gains of 2.3 percent. The transient business (negotiated and retail) segment is down -1.9 percent, but ADR is up 2.1 percent. Lastly, group bookings are up 3.7 percent in committed room nights over the same time last year, and ADR is up 3.6 percent. 

“As we move through the second and third quarter of 2016, to successfully navigate through these new headwinds, it’s imperative that hoteliers vigilantly reexamine local market conditions by utilizing advance reservation business intelligence solutions,” added Hach. “Best practices encompass closely monitoring competitive rates and inclusions. Too often hoteliers focus only on monitoring competitive rates, but standard competitive inclusions must be carefully assessed with rate canvassing strategies to maximize local advantage, especially given current market conditions.”   

Table Hotel Booking Trends Q2 2016

Table Hotel Booking Trends Q3 2016

The April NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by April 1, 2016, from the period of April 2016 to March 2017. 

*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity 

The second quarter is based on forward-looking data (April – June 2016). 

 

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, Chicago, Barcelona, Dubai, Hong Kong, Melbourne, Orlando, Shanghai, Singapore and Tokyo. Follow us on twitter.com/TravelClick and facebook.com/TravelClick.



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