North American Hoteliers Welcome Uptick in Rates & Bookings Across All Travel Segments as 2018 Begins
Transient Leisure Travel Sees Particularly Strong Bookings Boost of 6.8 Percent during Q1
NEW YORK – January 31, 2018 – TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today released new data from the Company’s January 2018 North American Hospitality Review (NAHR). According to this data, North American hoteliers are starting the New Year with gains across all travel segments in the first quarter of 2018, up 0.7 percent in average daily rates (ADR) and up 2.1 percent in bookings.
The transient leisure segment in particular stands out during the first quarter, with bookings up an impressive 6.8 percent and strong revenue per available room (RevPAR), up 7.3 percent.
“The inconsistency that most hoteliers experienced throughout 2017 has substantially subsided in recent months, proving that 2018 is already off to an encouraging start,” said John Hach, senior industry analyst, TravelClick. “There is a healthy balance of group, transient leisure and business demand, which shows sustainability throughout the upcoming year.”
Twelve-Month Outlook (January – December 2018)
For the next 12 months (January – December 2018), transient bookings are up 3.2 percent year-over-year, and ADR for this segment is up 1.2 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up a solid 6.3 percent in bookings, and ADR is up 0.9 percent. Additionally, the transient business (negotiated and retail) segment is down -0.7 percent in bookings, but ADR is up 2.5 percent. Lastly, group bookings are up 1.9 percent in committed room nights* over the same time last year, and ADR is up 1.8 percent.
“Even though economic concerns have subsided in recent months, hoteliers still need to be acutely aware of their local market prices, especially in creating value by room type during these winter months where demand levels often slip,” added Hach. “Taking advantage of meta shopping business intelligence and forward-looking data are great ways for hoteliers to ensure that they have all of the necessary information to make informed decisions.”
The January NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by January 1, 2018, from the period of January to December 2018.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The first quarter is comprised of forward-looking data from January through March 2018.