Hoteliers Advised to Focus on Early Reservation Opportunities to Capture Seasonal Demand
NEW YORK – May 27, 2015 – Hotels in major North American markets experienced positive growth in rate according to data from the May 2015 TravelClick North American Hospitality Review (NAHR). TravelClick’s data also reports that three quarters of the 25 markets measured are experiencing increases in committed occupancy and 90 percent are experiencing increases in average daily rates (ADR).
“There is a bright outlook for the coming summer travel season as we’re seeing strong year-over-year increases in the group, business and transient segments. To prepare for summer, hoteliers should consistently monitor their local competitive set not only focusing on rates but what other amenities are being included to best capitalize on seasonal demand,” said John Hach, Senior Industry Analyst at TravelClick.
12 Month Outlook (May 2015 – April 2016)
For the next 12 months (May 2015 – April 2016), overall committed occupancy* is up 2.8 percent when compared to the same time last year. ADR is up 4.7 percent based on reservations currently on the books.
Transient bookings (individual reservations made by business and leisure travelers) are up 3.9 percent year-over-year and ADR for this segment is up 5.1 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 5 percent and ADR gains of 3.9 percent. Transient business (negotiated and retail) segment occupancy has improved from last month and is up 2.3 percent. ADR is up 6.7 percent. Group segment occupancy is ahead by 2.3 percent and ADR is up 3.7 percent, compared to the same time last year.
Hach continued, “We are seeing that consumers are looking for a combination of price and value when selecting hotel rooms. Inclusions such as free Wi-Fi and meals are now often taken into the total cost consideration when making hotel decisions, especially on family vacations where budgets may be tight and hotels need to make sure they are catering to travelers’ demands in order to maximize bookings.”
The May NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by May 3, 2015 from the period of May 2015 to April 2016.
*Committed Occupancy – (Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
The second quarter combines historical data (April) and forward looking data (May-June)
