TravelClick: ADR, Committed Occupancy Show Major Signs of Growth in Q1 2017
Committed occupancy* and average daily rates (ADR) for the first quarter of 2017 are showing major signs of growth with group travel leading the way despite the continuing lag in transient booking pace in the fourth quarter of 2016, according to new data from TravelClick’s November 2016 North American Hospitality Review (NAHR).
Across all travel segments in the first quarter of 2017, occupancy and ADR are up 6.7 percent and 2.7 percent, respectively, and occupancy for the group segment is up 6.8 percent.
Twelve-Month Outlook (November 2016 – October 2017)
For the next 12 months (November 2016 – October 2017), transient bookings are up 2.7 percent year-over-year, and ADR for this segment is up 2.0 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 3.9 percent with ADR gains of 2.8 percent. The transient business (negotiated and retail) segment is down -0.8 percent, but ADR is slightly up 1.7 percent. Lastly, group bookings are up 3.8 percent in committed room nights over the same time last year, and ADR is up 2.6 percent.
The November NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by November 1, 2016, from the period of November 2016 to October 2017.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity. The fourth quarter combines historical data from October and forward-looking data from November and December.
Across all travel segments in the first quarter of 2017, occupancy and ADR are up 6.7 percent and 2.7 percent, respectively, and occupancy for the group segment is up 6.8 percent.
Twelve-Month Outlook (November 2016 – October 2017)
For the next 12 months (November 2016 – October 2017), transient bookings are up 2.7 percent year-over-year, and ADR for this segment is up 2.0 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 3.9 percent with ADR gains of 2.8 percent. The transient business (negotiated and retail) segment is down -0.8 percent, but ADR is slightly up 1.7 percent. Lastly, group bookings are up 3.8 percent in committed room nights over the same time last year, and ADR is up 2.6 percent.
The November NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by November 1, 2016, from the period of November 2016 to October 2017.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity. The fourth quarter combines historical data from October and forward-looking data from November and December.