While Occupancy is Increasing, Average Daily Rates Remain the Main Driver of Revenue Growth in the Hotel Sector
NEW YORK, 2013-02-20 — /travelprnews.com/ — In the fourth quarter 2012, online channels that include Online Travel Agents (OTAs), and hotel websites (Brand.com) continued to experience the most growth according to data from the TravelClick North American Distribution Review (NADR; First Quarter 2013), which aggregates hotel bookings by channel for the transient segment (individual leisure and business travelers).
The OTA channel saw a 6.1 percent increase in demand year-over-year while Brand.com increased bookings through its channels by 5.7 percent. The hotel direct channel, consisting of phone calls direct to property and walk-ins, increased 5.5 percent. The GDS (used by travel agents) and CRS (calls to a hotel’s 800-number) channels also showed increases from a year ago – by 3.9 and 2.1 percent, respectively.
When looking ahead at the first quarter 2013, advance bookings through OTAs are significantly ahead of the same time last year, up 8.2 percent. Brand.com is showing a 1.8 percent increase.
Share of Transient Rooms Sold by Channel
The table illustrates the share of transient room night by channel based on actual reservations.
“While all distribution channels contributed to occupancy growth in the fourth quarter, the primary driver of growth in revenue per available room (RevPAR) has been growth in average daily rates (ADR). In an increasingly favorable occupancy environment, hotels have been able to increase rates and reduce discounting. We see this trend continuing into 2013.” said Tim Hart, executive vice president, enterprise research and development, TravelClick. “Moderating occupancy growth makes effective pricing, revenue management, and distribution strategy all that much more important to ensure that hotels are capturing the most revenue per room possible.”
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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