Published on : Friday, August 22, 2014
Hotels in major North American markets are continuing to experience steady growth in both rate and occupancy across all travel segments, according to data from the August 2014 TravelClick North American Hospitality Review (NAHR).
“While summer may be coming to an end, the hotel market has a ‘hot outlook’ for the winter months,” said John Hach, Senior Vice President, Global Product Management of TravelClick. “According to TravelClick’s data, hotels will continue to see healthy gains in demand and average daily rates (ADR) across all segments into the New Year.”
12 Month Outlook (August 2014 – July 2015)
For the next 12 months (August 2014 – July 2015), overall committed occupancy* is up 3.7 percent when compared to the same time last year. ADR is up 4.6 percent based on reservations currently on the books.
Transient bookings are up 4.3 percent year-over-year and ADR for this segment is up 5.4 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 4.0 percent and ADR gains of 5.7 percent. Transient business (negotiated and retail) segment occupancy and ADR are both up 5.0 percent. Group segment occupancy is ahead by 3.2 percent and ADR is up 2.2 percent, compared to the same time last year.
Hach continued, “While the summer months are typically known to be a strong leisure segment period, the business segment has also seen positive gains. This is indicative of a growing economy and it is a welcomed revenue stream for hoteliers in the U.S.”
The August NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by July 27, 2014 from the period of August 2014 to July 2015.