NEW YORK, 2013-03-07 — /travelprnews.com/ — While demand for hotel rooms continues to see moderate growth across all segments , average daily rate (ADR) continues to be the main driver of growth for hotels in 2013, according to data from the February 2013 TravelClick North American Hospitality Review (NAHR).
“Based on TravelClick data, while committed occupancy is showing a steady increase as 2013 goes on, ADR remains the main source of growth for hotels,” said Tim Hart, executive vice president, enterprise research and development, TravelClick. “We expect to see this trend continue as we get further into the year.”
12 Month Outlook (February 2013 – January 2014)
Committed occupancy across all segments, for February 2013 through January 2014, is up 2.1 percent compared to a year ago. Based on reservations currently on the books, ADR is up 3.4 percent, compared to the same time last year. Revenue per available room (RevPAR) is up 5.5 percent.
The transient segment – made up of individual business and leisure travelers, remains responsible for the majority of hotel sector growth, up 2.8 percent overall. Business demand, which includes weekday transient negotiated and transient retail segments, is up 3.1 percent while leisure demand, which includes transient discount, transient qualified segments and transient wholesale, is up 2.5 percent. The group segment is up 1.8 percent.
Group segment ADR is up 0.5 percent compared to last year. Transient ADR is up 4.9 percent with business and leisure rates up 4.6 and 5.4 percent respectively.
First Quarter (January 2013 – March 2013)
In January, occupancy was up 2.1 percent. Looking ahead at February and March, committed occupancy across all segments is up 1.8 percent year-over-year, based on current reservations on the books.
Breaking January down further, group occupancy was down -1.2 percent compared to last year and transient occupancy increased by 3.1 percent, which was led by leisure travel which was up 6.6 percent. Business travel was flat for the month, down -0.4 percent. January ADR was up compared to a year ago, with transient ADR up 5.0 percent and group ADR up 2.9 percent.
For February and March, group committed occupancy is down -1.0 percent. However, transient demand for these months is looking strong, up 4.6 percent over the same time last year. Breaking transient down further into business and leisure, leisure demand is up 5.1 percent in February and March and business demand is also up 4.0 percent.
ADR is up 3.1 percent for February and March over the same time last year. This increase is driven by the transient segment which is up 5.0 percent. Business and leisure rates are up 4.9 and 5.6 percent, respectively. Group segment ADR is flat (down -0.1 percent).
“Q1 data follows the trends for the year with average daily rates driving growth in the sector,” Hart continued. “However, the transient travel segment is seeing healthy increases in bookings in Q1 indicating that consumers are planning vacations and companies are sending employees on the road.”
The February NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by February 3, 2013 for the period of February 2013 to December 2013.
# # #
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