Hotels should have a big year in 2014, according to data from the February 2014 TravelClick North American Hospitality Review (NAHR).
Both the transient (individual business and leisure travelers) and group segments are experiencing gains in occupancy and average daily rate (ADR) for the next 12 months, setting the stage for a strong uptick in revenue per available room (RevPAR).
"TravelClick hotel booking data shows that for the next 12 months hotels can expect more guests at higher room rates," said Tim Hart, executive vice president, business intelligence, TravelClick. "Although growth in 2013 was dominated by the transient segment, the encouraging pace of group as well as continued transient strength indicates a more balanced outlook for 2014."
From February 2014 to January 2015, committed occupancy is up 4.2 percent, according to the report. ADR is also up 3.2 percent, based on reservations currently on the books.
For all travel segments, ADR and reserved occupancy have increased by 2.9 percent, while RevPAR has increased by 5.4 percent.
Transient bookings are up 5.7 percent compared to the first quarter of 2013, and ADR for this segment is up 4.7 percent.
The transient leisure segment (discount, qualified and wholesale) is boasting occupancy gains of 5.9 percent and ADR gains of 5.4 percent. The transient business segment (negotiated and retail) is up 4.8 percent with an ADR increase of 4 percent.
Hart added that the transient segment was expected to be doing even better in the first quarter, but there may be a reason for it not performing as well as expected.
"While the transient channel, which is made up of individual business and leisure travelers, is still performing well, it is not as strong as one might expect in the first quarter given recent trends," Hart said. "We believe that this is attributed to the fact that the Easter holiday will fall in April - as opposed to March - this year."
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 Jan. 26, 2014, for the period of February 2014 to January 2015.
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