By Ed Brock
ADR for transient business travel in the second quarter increased 1.9 percent while bookings dipped 2.5 percent, representative of a trend of rising ADRs and decreasing bookings across most categories of hotel stays this summer, according to TravelClick’s May 2017 North American Hospitality Review.
ON THE OUTSET of the summer travel season, hotels in North America are seeing stable increases in ADR, but bookings are dropping, according to TravelClick’s May 2017 North American Hospitality Review. That continues a trend from earlier in the year, and TravelClick expects it will remain through the summer.
ADR for transient business travel in the second quarter increased 1.9 percent, but bookings dipped 2.5 percent. The pattern repeats for group travel, with ADR up 0.9 percent but occupancy down 3.5 percent. The transient leisure segment, however, saw gains in both ADR and bookings, up 1.0 percent and 3.2 percent, respectively.
“Our latest data indicates that North American hoteliers are still dealing with dips in occupancy across the board, with bookings down -0.7 percent for all travel segments in the second quarter,” said John Hach, TravelClick’s senior industry analyst.
Over the next year, transient bookings are expected to drop 0.5 percent year-over-year, but ADR for the segment will rise 1.4 percent, according to TravelClick. Transient leisure should see a 0.7 percent increase in occupancy and ADR, while transient business will lose 1.8 percent occupancy while gaining 2.4 percent in ADR. Lastly, group bookings for committed room nights expected to drop 0.2 percent while ADR rises 1.8 percent.
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