According to data from TravelClick’s December 2015 North American Hospitality Review (NAHR), properties throughout major North American markets are seeing a steady increase in bookings.
The December NAHR bases projections on group sales commitments and individual reservations in major North American markets for hotel stays booked by December 1, 2015 and from the period of December 2015 to November 2016.
Twenty-one of the 25 top markets have experienced occupancy growth within the past month, however a reliance on increasing ADR to achieve RevPAR growth has been noted. This is an important trend that is expected to continue into 2016.
“The new reservation growth in the final month of this year is welcomed news for hoteliers across North America,” says TravelClick senior analyst John Hach. “The overall reservation trend is positive, especially given recent headlines and concern over terrorism, showing that North America continues to be a strong market. As ADR continues to be the key driver of RevPAR growth, we foresee this trend continuing, making it increasingly important for hoteliers to leverage advance booking business intelligence solutions to actively manage unanticipated local market developments.”
From December 2015 to November 2016, transient bookings are up by 1.2 percent year-over-year, while ADR has increased by 2.7 percent.
More specifically, the transient leisure segment reveals occupancy gains of 4.6 percent and ADR gains of 2.8 percent; the transient business segment is down by 3.2 percent, while ADR is up by 3.5 percent; and demand in the group segment is up by 2.5 percent.
“2015 is ending on a resilient note, and this is carrying over into 2016; thus, there will continue to be viable opportunities for hoteliers to increase revenue and capitalize on the strength of the North American market,” says Hach. “These areas of growth are becoming increasingly localized and necessitate closely monitoring key nearby hotels and emerging alternative lodging competitors.”
