NEW YORK, Aug. 4, 2011 /PRNewswire/ -- Data from the July 2011 TravelClick North American Hospitality Review, detailing hotel bookings currently reserved during the period, June 31, 2011 through June 31, 2012, revealed that revenue per available room (RevPAR) has shown consistent improvement for the past 18 months. The overall industry average daily rate (ADR) for the same period was up 3.7 percent. The data also revealed that demand for the midscale hotel market is increasing, up 16.8 percent, for the next 12 months. This represents one of the largest and most consistent increases in demand for this market segment since the recession.
TravelClick's North American Hospitality Review also revealed that 3.3 percent more hotel rooms were sold during June 2011 as compared to June 2010. Transient sales – individual business and leisure travel – continued to lead industry growth, as demand and ADR were both up 4.9 percent year-over-year for the future 12 months. Group sales remained soft, improving only 1.5 percent.
The data was compiled by TravelClick® (www.travelclick.com), the leading provider of profitable revenue generating solutions for hoteliers worldwide. TravelClick's business intelligence division provides comprehensive, forward-looking market intelligence to the global travel industry.
Larry Kutscher, chief executive officer for TravelClick, said, "The data revealed by TravelClick's North American Hospitality Review shows that individuals are traveling more thereby increasing demand at hotels and allowing them to raise rates. This in turn represents a significant shift in the industry – hotels are not only seeing an increase in occupancy, but in ADR, RevPAR and profitability as well."
Kutscher continued, "During the recession, the midscale hotel market was severely impacted. The Review's findings paint an optimistic view of the industry and the current state of the economy. While the luxury segment continues to lead the way, the progress made in the midscale market may be an important indicator of the overall health of the industry."
Market by Market – 12 Month Outlook
The markets showing the most improvement in overall occupancy (business, leisure and group travel) for the next 12 months include Philadelphia (15.8 percent improvement), Indianapolis (15.2 percent improvement) and Phoenix (8.7 percent improvement). The markets showing the least amount of improvement in occupancy over the same period are Dallas (7.6 percent decline), Atlanta (4.6 percent decline) and Denver (4.1 percent decline).
"Improvements in these markets can be largely attributed to strong group sales," said Tim Hart executive vice president, business intelligence at TravelClick. "Indianapolis, Philadelphia and Phoenix have experienced 14.7 percent, 20.9 percent and 9.0 percent increases in group occupancy, year-over-year, respectively. As group sales improve, so too will the overall health of the hospitality market."
A notable market outlier for the coming 12 months is San Antonio. Bookings in the city show a double digit (15.9 percent) increase in transient occupancy, but the city is charging significantly less per room, as there is a 9.6 percent decrease in ADR, as compared to last year.
Top Ten U.S. Travel Markets Performance Data
* Indicates performance is above the market average.
** Indicates performance is below the market average.
Third Quarter 2011 (July 2011–September 2011)
The third quarter of 2011 is far stronger than the second with hotels experiencing record levels of demand compared to last year. RevPAR is up 6.2 percent and occupancy is up 1.9 percent, year-over-year. The majority of this growth is driven by business and leisure travelers, as transient RevPAR experienced 10 percent growth and transient ADR grew 4.7 percent, year-over-year.
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. These include Gaylord, Hilton, Hyatt, InterContinental, Loews, Marriott, Omni and Starwood. 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.
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, Houston, Melbourne, Shanghai, and Tokyo. Follow us on www.twitter.com/TravelClick and www.facebook.com/TravelClick.
SOURCE TravelClick, Inc.