Photo via Twitter/TravelClick
New data from TravelClick's October 2015 North American Hospitality Review shows that North American hotels are overcoming declining reservation pace en route to improving their average daily rate (ADR) performance.
Despite booking pace having dipped, ADR - the average rental income per paid occupied room in a given time period - is up 3.8 percent based on reservations currently on the books for this year.
TravelClick reported that ADR increased in nearly 90 percent of the 25 major North American markets. And according to TravelClick's October review, for the next year, transient bookings are up 0.1 percent year-over-year, while ADR is up 4.0 percent.
Here's a breakdown of additional findings courtesy of TravelClick:
TravelClick's Senior Industry Analyst John Hach attributed the declining reservation pace to a combination of factors.
"This could be a result of a combination of recent developments, including concern over a global economic slowdown, financial market turbulence and the seasonal slowdown of advance booking pace that often occurs during this time of year," he said in a statement. "However, the weakening pace has not kept hoteliers from increasing ADR."
With 2016 fast approaching, Hach also encouraged hoteliers to "proactively plan strategies for capturing share in higher profitability channels - like the GDS and their own websites," pointing out that it "helps to safeguard RevPAR performance" in case the declining reservation pace continues.
Hach also states that "as hoteliers prepare for the upcoming holiday season, it's important to note that the industry occupancy outlook for group reservations remains strong throughout the upcoming months."
"Heading into 2016, there is also a significant uptick in reservations for individual leisure travelers. These results indicate that there is a solid base of advance bookings for group and transient business during the upcoming months," he concludes.
The October North American Hospitality Review analyzes group sales commitments and individual reservations in the top 25 North American markets for hotel stays booked by Oct. 1, 2015 from the period of October 2015 to September 2016.
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