Group Demand Driving Improved Occupancy; Higher Transient Prices Driving Improvement of Average Daily Rate
Stronger Leisure Demand Playing Larger Role in Occupancy Growth
NEW YORK, March 8, 2012 /PRNewswire/ -- Group business is driving occupancy growth while transient -- individual business and leisure travelers -- is driving an increase in average daily rates (ADR) according to data from TravelClick's February 2012 North American Hospitality Review (NAHR). The February NAHR is based on group sales and individual reservations for hotel stays from February 2012 to January 2013.
Group committed occupancy on the books for February through the end of 2012 is up 5.9 percent compared to this time last year and new group business added over the last month is up 5.1 percent. However, ADR in the group segment is down marginally from a year ago by -1.1 percent.
The transient segment is showing a 3.7 percent increase in occupancy and a 5.2 percent increase in ADR compared to last year. Within this segment, business demand is up 2.8 percent with an ADR increase of 5.3 percent, while leisure demand is up 3.4 percent with an ADR increase of 4.8 percent compared to last year. These metrics indicate that the leisure travel is currently growing faster than business travel – the key driver of growth in the hotel sector in 2011.
"Business travel has been the primary driver of occupancy growth over the past two years, but it is good to see the leisure segment picking up the pace. Strong demand across group, transient business, and now transient leisure will offer hotels a lot of opportunity to make choices that maximize revenue production," said Tim Hart , executive vice president, enterprise services at TravelClick.
Overall, committed occupancy (group and transient combined) is up 5.4 percent year-over-year. Average daily rate (ADR) is up 2.6 percent, and revenue per available room (RevPAR) is tracking ahead by 5.0 percent, based on reservations currently on the books for the remainder of 2012. Discounted rate products like transient discount (e.g. loyalty and friends and family rates) and qualified (e.g. AAA rates) are up 4.8 percent, indicating that strong demand is enabling hotels to achieve higher rates.
First Quarter 2012 Outlook (January 2012 - March 2012)
RevPAR for the first quarter is up 3.1 percent compared to the same time last year, with the RevPAR outlook for March up 6.4 percent. Overall occupancy for the quarter is up 1.1 percent and ADR is up 2.8 percent. The transient segment is driving strong ADR growth with an increase of 3.7 percent, year-over-year. Group ADR is up 1.4 percent for the quarter.
About TravelClick, Inc.
TravelClick (www.TravelClick.com) is the leading provider of revenue generating solutions for hoteliers across the globe. TravelClick offers hotels world-class reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, we help more than 30,000 hotel clients in over 140 countries drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape. TravelClick has offices in New York, Atlanta, Chicago, Barcelona, London, Dubai, Hong Kong, Houston, Melbourne, Orlando, Shanghai, Singapore and Tokyo. Follow us on www.twitter.com/TravelClick and www.facebook.com/TravelClick.
About the TravelClick North American Hospitality Review
The TravelClick North American Hospitality Review is based on reservation and committed group sales data by hotel companies participating in TravelClick's MarketVision Demand Position Product. The data is collected in 25 major North American Markets, representing 202 million annual room nights and $27 billion in annual room revenue. TravelClick is the only business intelligence provider that provides comprehensive forward-looking data, based on real bookings, to hoteliers around the globe.
KCSA Strategic Communications
SOURCE TravelClick, Inc.
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