Hotels in major North American markets are continuing to experience steady growth in both rate and occupancy across travel segments, according to data from the July 2014 TravelClick North American Hospitality Review (NAHR).
“While the transient segment has been performing well for months, the group segment’s recent increase provides an opportunity for hoteliers to take measured transient pricing action to gradually increase ADR,” says John Hach, senior vice president for global product management of TravelClick. “Current and future reservation pace continues to show solid gains across the board, providing an opportunity for hoteliers to take calculated risks to grow RevPAR at an accelerated rate.”
For the next 12 months, overall committed occupancy is up 3 percent when compared to the same time last year. ADR is up 4.1 percent based on reservations currently on the books.
Transient bookings are up 4.9 percent year-over-year and ADR for this segment is up 5.4 percent. When broken down further, the transient leisure segment is showing occupancy gains of 4.7 percent and ADR gains of 6 percent. The transient business (negotiated and retail) segment is up 5.1 percent with an ADR increase of 4.5 percent. Group segment occupancy is ahead by 2.1 percent and ADR is up 1 percent, compared to the same time last year.
