Group Travel in Particular Shows Uptick in Fourth Quarter, with Reserved Occupancy Increasing over 4%
NEW YORK – October 26, 2017 – North American hoteliers are ending the year strong with healthy gains across all travel segments during the fourth quarter of 2017, according to new data from TravelClick’s October 2017 North American Hospitality Review (NAHR). Overall, average daily rates (ADR) and occupancy are both up 1.6 percent and 4.3 percent respectively.
Group travel data in particular shines in the fourth quarter, with ADR up 2.6 percent and bookings significantly up 7.8 percent. The transient segment is not far behind, though, with transient business travel up 2.5 percent in ADR and 2.0 percent in bookings, and transient leisure travel slightly up 0.2 percent in ADR and 4.1 percent in bookings.
“October’s key reservation metrics offer encouraging news for hoteliers, with structural growth across all travel segments and noteworthy gains in group bookings specifically,” said John Hach, TravelClick’s senior industry analyst. “What’s more is that we also see promising signs in organic market growth, which is helping to support increases in rates at the same time.”
Twelve-Month Outlook (October 2017 – September 2018)
For the next 12 months (October 2017 – September 2018), transient bookings are up 3.2 percent year-over-year, and ADR for this segment is up 1.3 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 4.9 percent, and ADR is up 0.8 percent. Additionally, the transient business (negotiated and retail) segment is up 1.7 percent, and ADR is up 2.5 percent. Lastly, group bookings are up 2.2 percent in committed room nights over the same time last year, and ADR is also up 2.7 percent.
“While this year’s fourth-quarter data is undoubtedly promising, there is still some uncertainty as to whether or not advance reservation growth will materialize in early 2018,” added Hach. “With this in mind, it remains increasingly important for hoteliers to actively manage future reservation demand through promotional offerings and with advance business intelligence throughout the upcoming months.”
The October NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by October 1, 2017, for the period of October 2017 to September 2018.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The fourth quarter combines data from October, November and December.