Travel Daily News - Closing out 2017, North American hoteliers see solid gains in rates and bookings
All travel segments end year with strong Revenue Per Available Room (RevPAR) in Q4.
NEW YORK – TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, announced new data from the company’s December 2017 North American Hospitality Review (NAHR). According to this data, as North American hoteliers transition from 2017 into the New Year, all travel segments in the fourth quarter of 2017 are experiencing growth in both average daily rates (ADR) and bookings, up 1.2 percent and 4.3 percent, respectively. TravelClick also found that RevPAR for these segments is up a notable 5.6 percent during this time.
With a continued increase in holiday travel this year, group travel in particular is up 5.1 percent in bookings and 1.7 percent in ADR during the fourth quarter of 2017. Additionally, transient business travel is seeing an uptick in both bookings and ADR, up 4.3 percent and 2.0 percent, respectively. The transient segment overall is up 4.1 percent in bookings and 1.1 percent in ADR as well.
“As we wrap up 2017, this level of growth has been long-awaited by hoteliers, especially given how inconsistent the past year has been as a result of natural disasters, shifts in public policies and international tensions,” said John Hach, Senior Industry Analyst, TravelClick. “The hospitality industry has definitive reason to embrace this last quarter as it prepares for what’s ahead in the first quarter of 2018. Group committed occupancy in the first quarter, for example, is rather weak, currently showing a decline of -1.4 percent.”
Twelve-Month Outlook (December 2017 – November 2018)
For the next 12 months (December 2017 – November 2018), transient bookings are up 5.8 percent year-over-year, and ADR for this segment is up 0.9 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up an impressive 8.0 percent in bookings, and ADR is up 0.4 percent. Additionally, the transient business (negotiated and retail) segment is up 3.4 percent in bookings, and ADR is up 2.5 percent. Lastly, group bookings are up 1.8 percent in committed room nights* over the same time last year, and ADR is up 1.4 percent.
“While we are ending 2017 on a positive note, it’s more critical than ever for hoteliers who actively compete for smaller groups and transient occupancy opportunities to ensure that they start 2018 on the right track,” added Hach. “Hoteliers need to prioritize the use of forward-looking data to help them manage the demand peaks and dips that are anticipated at the start of the year.”
The December NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by December 1, 2017, from the period of December 2017 to November 2018.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The fourth quarter combines data from October and November and forward-looking data from December.
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