North American Hotel Industry Still Showing Strong Numbers
It’s been a good summer and year for North American hotels, and numbers are expected to continue growing as long as hoteliers keep their foot on the gas, according to hospitality solutions provider TravelClick.
According to data from the July 2015 TravelClick North American Hospitality Review (NAHR), average daily rate (ADR), reserved occupancy and revenue per available room (RevPAR) are all up for the third quarter of 2015, compared to the third quarter of 2014, based on reservations currently on the books in the top 25 North American markets.
Across all travel segments, ADR is up 4.2 percent, reserved occupancy is up 2.7 percent and RevPAR is up 7 percent. The transient business segment (negotiated and retail) has experienced the greatest increase among all segments in ADR for the third quarter (up 6.1 percent), while the transient leisure segment (discount, qualified and wholesale) has shown the greatest increase in occupancy and RevPAR (up 4.3 percent and 8.1 percent, respectively).
Over the next 12 months (July 2015-June 2016), the numbers look good, too. Overall committed occupancy (transient rooms reserved + group rooms committed/capacity) is currently up 2.4 percent, year-on-year.
Transient bookings (individual reservations made by business and leisure travelers) are up 3.1 percent, with ADR for the segment shooting up 4.7 percent. When broken down further, transient leisure bookings are up 5.1 percent, with ADR gains of 3.5 percent. And while transient business occupancy is currently down 0.2 percent for the next 12 months, ADR for the segment is up 6.4 percent, showing an even greater increase in the performance metric than it does for the third quarter of 2015.
Group segment occupancy is up 2 percent and ADR for the segment is up 3.4 percent over the next 12 months.
“Hoteliers have good reason to celebrate this summer given the encouraging trends in leisure booking pace and ADR,” said John Hach, senior industry analyst at TravelClick, via a release. “While our overall forecast is positive, it’s very important that hoteliers focus on creating experiences throughout the entire guest stay that provide value in order to continue on the momentum through the end of summer.”
The July NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by July 5, 2015 from the period of July 2015 to June 2016.
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