Group Bookings Slow in 2013
NEW YORK, 2013-04-04 — /travelprnews.com/ — Hotels continue to see a steady increase in revenue per available room (RevPAR) driven primarily by increases in rate, according to data from the March 2013 TravelClick North American Hospitality Review (NAHR). Occupancy remains steady for the remainder of the year.
“Looking forward, we see signs that occupancy and Average Daily Rate (ADR) growth will continue to be positive,” said Tim Hart, executive vice president, TravelClick. “However, there are signs of weakness in the group sector, as the pace of new group bookings continues to decline or flatten depending on the month. We believe this warrants a watchful eye.”
12 Month Outlook (March 2013 – February 2014)
When looking at the next 12 months (March 2013 – February 2014), committed occupancy for the whole sector is increasing 1.9 percent year-over-year and ADR is showing a healthy gain of 3.5 percent.
The group segment is showing an occupancy increase of 1.7 percent and an ADR gain of 0.8 percent compared to last year.
Transient bookings, which consist of individual business and leisure travelers, are up 2.6 percent year-over-year. ADR for this segment is up a healthy 5.0 percent. Currently, the leisure segment is the strongest, with demand up 2.4 percent and ADR up 5.6 percent compared to the same time period last year. Business travel demand is up 2.4 percent and ADR for this segment is up 4.5 percent.
*Q1 data broken down by month is available by request
“It is important for hoteliers to understand that it is unlikely that they will experience the same gains in both occupancy and ADR that they did in 2012,” Hart added. “While we do expect to see growth in the market overall, weakening group demand will make it hard for the industry to achieve the same level of performance it saw in 2012.”
The March NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by March 3, 2013 for the period of March 2013 to February 2014.
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About TravelClick, Inc.
TravelClick (TravelClick.com) is the leading provider of revenue generating solutions for hoteliers across the globe. TravelClick offers hotels world-class reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, we help more than 30,000 hotel clients in over 160 countries drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape. TravelClick has offices in New York, Atlanta, Chicago, Barcelona, Dubai, Hong Kong, Houston, Melbourne, Orlando, Philadelphia, Shanghai, Singapore and Tokyo. Follow us on twitter.com/TravelClick and facebook.com/TravelClick.
Danielle DeVoren/ Taylor McGrann
KCSA Strategic Communications
212.896.1272 / 212.896.1253
ddevoren@kcsa.com / tmcgrann@kcsa.com