TravelClick Reports Travelers are Booking Hotels Further in Advance
By Claudette Covey
October 08, 2012 10:20 PM
An analysis of hotel reservations uncovered that individual business and leisure travelers are making hotel reservations further in advance, indicating that they have a higher price tolerance and are planning further ahead. The data is based on the TravelClick September 2012 TravelClick North American Hospitality Review (NAHR).
“The most recent TravelClick data presents a clear shift in when travelers are booking hotel rooms,” said Tim Hart, executive vice president, research and development at TravelClick. “Business and leisure travelers are booking further in advance, no longer holding out until the last minute. For hoteliers, this means that it is important to account for this shift in the booking window in their forecasting, relying less on comparisons to last year’s booking pace and more on recent booking pace trends.”
Committed occupancy for August 2012 through July 2013 is up 3.9 percent and average daily rate (ADR) is up 4.1 percent, compared to the same time period last year. From August 2012 to July 2013, group and transient segments are showing increases in occupancy at 3.5 percent and 4.4 percent, respectively, according to data from the NAHR. Business demand is up 4.1 percent, and leisure demand is up 4.3 percent compared to the same time period last year. With respect to ADR, the group segment is up 2.2 percent, and the transient segment is up 5 percent year-over-year. Looking at the transient segment more closely, business and leisure rates are up 5 percent and 5.6 percent, respectively.
In the third quarter of this year, July to September, the hotel industry is experiencing a 1.2 percent increase in occupancy and a 3.8 percent increase in ADR. Revenue per available room (RevPAR) is up 4.4 percent compared to last year.
Looking at September specifically, overall committed occupancy was relatively flat, increasing 0.6 percent, and ADR is increasing 3.3 percent, year-over-year. Both the transient and group segments supported the increase in ADR in September showing 3.9 percent and 2.5 percent increases, respectively. However, the transient segment supported occupancy for the month, up 2.1 percent. The group segment is down 1.3 percent compared to the same time period last year.
Committed occupancy for the fourth quarter continues to show gains, up 7.2 percent year-over-year. Group committed occupancy is up 5.3 percent and transient demand is strong, increasing 11.7 percent year-over-year. ADR for the fourth quarter continues to strengthen, up 4.5 percent over the same time last year. The ADR increase is driven by both group and transient, up 4.6 percent and 4.4 percent, respectively.
“It is important to remember that if the early booking trend continues, Q4 occupancy increases will level out over the coming months, since more travelers will be booking their stays now,” Hart said. “We will be closely monitoring if travelers continue to exhibit early booking behavior and how hotels can capitalize on this booking pattern.”
The September NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by Sept. 2, 2012, for the period of August 2012 to July 2013.
TravelClick is a provider of revenue-generating solutions for hoteliers across the globe. TravelClick offers hotels world-class reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business.