Flattening Reservation Pace Presents Ongoing Challenge for Hoteliers
As North American hoteliers progress through the early months of 2017, the pace of new bookings is flat with new February reservation commitments at -0.8%. However, average daily rates (ADR) for the first and second quarters of 2017 are showing signs of growth across all travel segments, according to new data from TravelClick’s February 2017 North American Hospitality Review (NAHR).
Forty-four percent of North American markets are showing committed occupancy* increases compared to a month ago; ADR is growing in 21 of the top 25 North American markets, up 2.6% based on reservations currently on the books. Both group and transient rates are experiencing an uptick of 3.4% and 2.4%, respectively compared to last year.
Twelve-Month Outlook (February 2017 – January 2018)
For the next 12 months (February 2017 – January 2018), transient bookings are flat at 0.1% year-over-year, and ADR for this segment is up 2.2%. When broken down further, the transient leisure (discount, qualified and wholesale) segment is flat at -0.1% and ADR is up 1.9%. The transient business (negotiated and retail) segment is also flat at -0.8% and ADR is up 2.7%. Lastly, group bookings are up 1.3% in committed room nights over the same time last year, and ADR is up 2.8%.
TravelClick recommends that hoteliers keep the following tactics top-of-mind to ensure that they stay ahead of the competition: maximize their online presence, promote their properties across all channels and leverage business intelligence to maximize revenue per available room (RevPAR) within local markets. These proactive marketing initiatives will allow hoteliers to push through the flattening booking pace and stay strong well into the remainder of the year.
The February NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by February 1, 2017, from the period of February 2017 – January 2018.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The first quarter combines historical data (January) and forward looking data (February – March).
Forty-four percent of North American markets are showing committed occupancy* increases compared to a month ago; ADR is growing in 21 of the top 25 North American markets, up 2.6% based on reservations currently on the books. Both group and transient rates are experiencing an uptick of 3.4% and 2.4%, respectively compared to last year.
Twelve-Month Outlook (February 2017 – January 2018)
For the next 12 months (February 2017 – January 2018), transient bookings are flat at 0.1% year-over-year, and ADR for this segment is up 2.2%. When broken down further, the transient leisure (discount, qualified and wholesale) segment is flat at -0.1% and ADR is up 1.9%. The transient business (negotiated and retail) segment is also flat at -0.8% and ADR is up 2.7%. Lastly, group bookings are up 1.3% in committed room nights over the same time last year, and ADR is up 2.8%.
TravelClick recommends that hoteliers keep the following tactics top-of-mind to ensure that they stay ahead of the competition: maximize their online presence, promote their properties across all channels and leverage business intelligence to maximize revenue per available room (RevPAR) within local markets. These proactive marketing initiatives will allow hoteliers to push through the flattening booking pace and stay strong well into the remainder of the year.
The February NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by February 1, 2017, from the period of February 2017 – January 2018.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The first quarter combines historical data (January) and forward looking data (February – March).