By Judy Maxwell
THE PACE OF bookings is on track to increase for North America hotels in the fourth quarter of this year, says TravelClick, which charts reservations across all travel segments.
That means hotels will be less reliant on having to raise rates as a means to increase RevPAR, said John Hach, TravelClick’ s senior industry analyst.
“Heading into the final months of the year, the latest data is showing a positive shift that will break the ongoing trend of inconsistent booking growth that has loomed over most of 2017,” reads the report. “North American hoteliers now have viable opportunities to capture local demand.”
The NAHR shows a positive trend as 4Q17 shows “healthy growth” in both ADR and bookings.
The August NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays booked by Aug. 1 for August through July.
Overall, ADR is up 0.8 percent and committed occupancy is up 4.4 percent. The group and transient segments show particularly strong gains in bookings, up 4.5 percent and 4.4 percent, respectively.
Transient leisure travel is the exception, with ADR slightly down -0.5 percent. However, noted the company, bookings for this segment are up 6.4 percent.
Looking at transient bookings, reservations are up 1.8 percent year-over-year, and ADR is slightly up 0.5 percent. “When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 4.1 percent, and ADR is flat at zero percent,” said the report.
“The transient business (negotiated and retail) segment is down 1.4 percent. However, ADR is up 1.4 percent.
“Lastly, group bookings are up 1.2 percent in committed room nights over the same time last year, and ADR is up 1.5 percent.”
The charted outlook “brings a refreshing wave of much-needed optimism for hoteliers,” said Hach. “This is an opportune time to place greater emphasis on acquiring and converting new guests, especially through the higher ADR direct and GDS channels.”
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