North American Hotels Experience Strong Revenue Growth Heading into New Year
NEW YORK – November 23, 2015 – Hotel industry performance is continuing to strengthen, with Q3 2015 revenue per available room (RevPAR) increasing 3.1 percent year-over-year – and this growth is being driven through online and mobile bookings. According to data from TravelClick’s North American Distribution Review (NADR; Q4 2015), bookings through hotel company websites (Brand.com), online travel agents (OTAs) and in-person travel agents (global distribution systems / GDS) experienced the most growth in bookings in the third quarter. TravelClick’s NADR report aggregates hotel bookings by channel for the transient segment (individual leisure and business travelers).
In Q3 2015, the OTA (which includes Expedia.com, Priceline.com, etc.), Brand.com and GDS channels all experienced steady healthy growth in the transient segment, up 6.9 percent, 4.2 percent and 3.1 percent, respectively. Hotel Direct (calls made directly to the property and walk-in customers) and calls to a hotel’s 800-number (the CRO channel) decreased by -7.8 percent and -3.4 percent, respectively. Based on reservations that are currently on the books for Q4, TravelClick expects to see additional positive growth for the OTA, Brand.com and GDS channels when the quarter is complete.
“While consumers are still utilizing the more traditional Hotel Direct channel to book rooms, it’s clear from the continuous quarterly growth across the Brand.com and OTA channels that customers of all ages are predominantly using digital and mobile methods to make their reservations,” said John Hach, TravelClick’s senior industry analyst. “Along with Brand.com and OTAs, the GDS is also, once again, continuing to demonstrate growth across the board.”
Average daily rates (ADR) across all channels increased 3.4 percent compared to Q3 2014. The Hotel Direct channel had the highest room rate growth in the quarter, up 4.0 percent year-over-year.
For Q4 2015, transient ADR is ahead by 3.5 percent, with the CRO (central reservation office) channel generating the highest ADR growth, up 4.5 percent. In Q4, ADR is also increasing 3.8 percent for GDS, 3.5 percent for Hotel Direct, 2.9 percent for Brand.com and 1.8 percent for OTAs.
The TravelClick North American Distribution Review is based on data for 25 major North American markets, comprising 227 million annual room nights and $36 billion in annual room revenue.
