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TravelClick: Occupancy for Transient Segment Up 10.4% Overall

As North American hoteliers kick off the early months of 2017, most travel segments are experiencing healthy average daily rate (ADR) and committed occupancy* gains in both the first and second quarter of 2017, according to new data from TravelClick’s January 2017 North American Hospitality Review (NAHR). Occupancy for the transient segment in particular is seeing significant growth in the second quarter, up 10.8 percent for transient leisure travel, 8.6 percent for transient business travel and 10.4 percent overall.
After overcoming an inconsistent reservation pace and tepid growth during the latter part of 2016, North American hoteliers can feel confident about the start of 2017, as the first two quarters are showing stronger and more consistent growth, the company said. The second quarter continues to build upon the first quarter’s growth, with all travel segments experiencing a 3.5 percent uptick in ADR, compared to 3.0 percent.
Twelve-Month Outlook (January – December 2017)
For the next 12 months (January – December 2017), transient bookings are up 3.2 percent year-over-year, and ADR for this segment is up 3.4 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 4.0 percent with ADR gains of 3.1 percent. The transient business (negotiated and retail) segment is flat at -0.1 percent, but ADR is up 4.0 percent. Lastly, group bookings are up 2.1 percent in committed room nights over the same time last year, and ADR is up 2.7 percent.
The January NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by January 1, 2017, from the period of January to December 2017.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity. The first quarter is comprised of forward-looking data from January through March 2017.
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