Summer Continues with Inconsistent Rates and Bookings for North American Hoteliers
Group and Transient Leisure Travel Stand Out with Rate and Occupancy Growth in Third Quarter of 2017
NEW YORK – As North American hoteliers push forward into the third quarter of 2017, both average daily rates (ADR) and bookings remain inconsistent across all travel segments, according to new data from TravelClick's July 2017 North American Hospitality Review (NAHR). This marks an ongoing trend for the year.
However, some travel segments are experiencing noteworthy signs of growth during the quarter. For example, group travel is up 1.3 percent in ADR and transient leisure up 2.6 percent in bookings.
"Accepting unpredictability as the new norm, hoteliers are finding this year's summer months a bit unusual compared to those in the past," said John Hach, TravelClick's senior industry analyst. "While ADR for all travel segments is slightly up 0.1 percent and bookings are slightly down -0.8 percent, there is some indication in the numbers that healthy gains are on the horizon in the coming months."
Twelve-Month Outlook (July 2017 – June 2018)
For the next 12 months (July 2017 – June 2018), transient bookings are up 0.5 percent year-over-year and ADR for this segment is slightly up 0.2 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 2.8 percent, and ADR is slightly down -0.4 percent. The transient business (negotiated and retail) segment is down -3.5 percent; however, ADR is up 1.5 percent. Lastly, group bookings are up 0.8 percent in committed* room nights over the same time last year, and ADR is up 1.7 percent.
"Moving into the latter part of the summer season and into the fall, hoteliers must leverage business intelligence tools and forward-looking data for guidance to stay ahead of the competition in this continued period of inconsistency," added Hach. "Any number of factors could be contributing to this uncertain time – the current economic climate, global events, the continuation of the on-demand / sharing economy. As such, data is the key for hoteliers to stay informed and on top of the industry."
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The third quarter combines forward-looking data (July – September).
About TravelClick, an Amadeus Company
TravelClick offers innovative, cloud-based and data-driven solutions for hotels around the globe to maximize revenue. TravelClick enables over 38,000 hoteliers to drive better business decisions and know, acquire, convert and retain guests. The Company's interconnected suite of solutions includes Business Intelligence, Reservations & Booking Engine, Media, Web & Video and Guest Management. As a trusted hotel partner with more than 30 years of industry experience, TravelClick operates in 176 countries, with local experts in 39 countries and 14 offices in New York, Atlanta, Bucharest, Chicago, Barcelona, Dubai, Hong Kong, Melbourne, Myrtle Beach, Orlando, Ottawa, Paris, Shanghai and Singapore. Additionally, the Company fosters more than 600 travel-focused partnerships for hotels to leverage. Follow TravelClick on Facebook, Twitter and LinkedIn.
Caitlin Kasunich
KCSA Strategic Communications
212.896.1241