Bookings Also Stabilizing Throughout Several Markets
NEW YORK – April 9, 2019 – TravelClick, an Amadeus company, today released new data from the Company’s March 2019 North American Hospitality Review (NAHR). According to this data, North American hoteliers are entering the spring season and rounding out the first quarter of 2019 with continued average daily rate (ADR) growth, up 2.3 percent across all travel segments. Group travel ADR is particularly strong, up 4.0 percent in Q1.
Additionally, for the first time in several months, there are signs that bookings are stabilizing across many North American markets, which may continue through the remainder of the year, according to TravelClick’s current data.
“Driving the rate growth in the first quarter, group travel is also experiencing a slight uptick of 1.0 percent in revenue per available room (RevPAR),” said John Hach, TravelClick’s Senior Industry Analyst. “As hoteliers head into the second quarter of the year, however, it will be more important than ever to monitor ADR closely to track whether or not growth is able to persist in the coming months.”
Twelve-Month Outlook (March 2019 – February 2020)
For the next 12 months (March 2019 – February 2020), transient bookings are down -6.0 percent year-over-year, but ADR for this segment is up 2.9 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is down -7.4 percent in bookings, but ADR is up 2.8 percent. Additionally, the transient business (negotiated and retail) segment is down -2.7 percent in bookings but up 1.7 percent in ADR. Lastly, group bookings are down -1.0 percent in committed room nights* over the same time last year, but ADR is up 3.2 percent.
“While occupancy stability is a step in the right direction, hoteliers must always be prepared and continue to take proactive measures to compete in the current environment,” added Hach. “These actions should include a heightened focus on offering compelling added-value inclusions within Best Available Rate pricing options. Doing so is extremely important to uphold the current level of ADR growth while consumers are looking to finalize their annual vacation plans over the upcoming peak travel season.”
The March NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by March 1, 2019, for the period of March 2019 – February 2020.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The first quarter combines historical data (January and February) and forward-looking data (March).