NEW YORK, 2016-Oct-13 — /Travel PR News/ — Hoteliers in major North American markets can look forward to an improved group booking pace beginning at the end of 2016 and continuing into 2017, demonstrating its value in capturing incremental business as hoteliers prepare for the New Year. At the same time, hoteliers are experiencing healthy increases in both transient leisure (individual reservations that are made by leisure travelers) and group bookings in the third and fourth quarters of 2016, according to new data from TravelClick’s September 2016 North American Hospitality Review (NAHR).
“The current hotel environment is requiring a renewed need to focus on competing for new business as early as possible,” said John Hach, TravelClick’s senior industry analyst. “The group segment is showing signs of longer-term incremental opportunity, especially as we look out into the second quarter of 2017.”
Twelve-Month Outlook (September 2016 – August 2017)
For the next 12 months (September 2016 – August 2017), transient bookings are up 2.1 percent year-over-year, and ADR for this segment is up 1.8 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 3.7 percent, with ADR gains of 2.3 percent. The transient business (negotiated and retail) segment is down -1.5 percent, but ADR is up 2.0 percent. Lastly, group bookings are up 4.4 percent in committed room nights over the same time last year, and ADR is up 3.0 percent.
“There is increasing need for hoteliers to engage with the group channel as an opportunistic resource for attaining upcoming revenue per available room (RevPAR) growth,” added Hach. “Doing so reduces hoteliers’ dependency on shorter-term reservations that are becoming more and more competitive to covert, especially given loyalty program membership discounts.”
The September NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by September 1, 2016, from the period of September 2016 to August 2017.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
**Reserved Occupancy – The third quarter combines historical data (July and August) and forward-looking data (September)
About TravelClick, Inc.
TravelClick (TravelClick.com) provides innovative cloud-based solutions for hotels around the globe to grow their revenue, reduce costs and improve performance. 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 38,000 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, Bucharest, Dubai, Hong Kong, Melbourne, Myrtle Beach, Orlando, Ottawa, Paris, Shanghai, Singapore and Tokyo. Follow us on twitter.com/TravelClick and facebook.com/TravelClick.
KCSA Strategic Communications
Source: TravelClick, Inc.