NEW YORK — Most North American travel segments have experienced 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 per cent for transient leisure travel, 8.6 per cent for transient business travel and 10.4 per cent 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,” says John Hach, TravelClick’s senior industry analyst. “The second quarter continues to build upon the first quarter’s growth, with all travel segments experiencing a 3.5-per-cent uptick in ADR, compared to three per cent. This is promising news, especially for the transient business segment, which struggled for growth throughout much of 2016.”
The NAHR looks at group-sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by Jan. 1, 2017, from the period of January to December 2017.
For the next 12 months (January to December 2017), transient bookings are up 3.2 per cent year-over-year and ADR for this segment is up 3.4 per cent. Group bookings are up 2.1 per cent in committed room nights over the same time last year and ADR is up 2.7 per cent.
“To ensure we continue to ride this wave well into 2017, hoteliers must focus even more on differentiating themselves within their local markets and using business-intelligence tools to maximize revenue opportunities to gain reservation pace ahead of competitors,” says Hach. “There are a number of factors that affect the health of the hospitality industry on a daily basis, including current events, economic factors and new technologies and forward-pacing data is the key to understanding the marketplace and making the right decisions.”
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity The first quarter is comprised of forward-looking data from January through March 2017.