Strong Group Travel Drives Increases in Rates and Bookings
NEW YORK – April 24, 2018 – TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today released new data from the Company’s April 2018 North American Hospitality Review (NAHR). According to this data, North American hoteliers are experiencing continued growth in the second quarter of 2018, with bookings up 2.7 percent and average daily rates (ADR) up 2.5 percent across all travel segments.
Driving much of this growth is group travel, up 7.5 percent in bookings, 3.8 percent in ADR and 11.6 percent in revenue per available room (RevPAR). Additionally, RevPAR for all travel segments is up an impressive 5.3 percent.
“Not only are hoteliers seeing a notable uptick in second-quarter reserved group bookings, but ADR is also increasing across the board, up 1.9 percent in transient overall, 2.4 percent in transient business and 1.7 percent in transient leisure,” said John Hach, senior industry analyst, TravelClick. “The start of 2018 has proven to be solid for hoteliers when it comes to both rates and bookings, and the third quarter is slated to echo that sentiment based on preliminary data.”
Twelve-Month Outlook (April 2018 – March 2019)
For the next 12 months (April 2018 – March 2019), transient bookings are up 2.1 percent year-over-year, and ADR for this segment is up 2.2 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 2.3 percent in bookings, and ADR is up 2.1 percent. Additionally, the transient business (negotiated and retail) segment is up 1.4 percent in bookings, and ADR is up 2.6 percent. Lastly, group bookings are up 1.2 percent in committed room nights* over the same time last year, and ADR is up 3.1 percent.
“Even in a growing market, to earn their fair share of bookings and to maximize revenues, hoteliers must be vigilant and monitor market demand as occupancy and pricing continually change,” added Hach. “Moreover, the best performing hotels will offer customers a personalized experience across their entire guest journey – giving them a reason to book the hotel initially and stay again as repeat, loyal guests.”
The April NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by April 1, 2018, from the period of April 2018 – March 2019.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The second quarter is based on forward-looking data (April – June 2018).
